September IIP contracts shockingly to 0.4% YoY !!!

The Index of Industrial Production ( IIP) for the month of September fell to a shocking (-) 0.4 per cent on a year-on-year basis. The number is way below the ET Now poll estimates of 3%. Revised figures released on Monday showed August output growth was revised down to 2.3 percent from 2.7 percent. In the April-September period, industrial production expanded an annual 0.1 percent. The consumer durables sector contracted at (-)1.7% versus a growth of 8.9% year-on-year. The manufacturinf sector growth also fell sharply at (-)1.5% versus 3.1% YoY. The basic goods sector exhibited a growth of 3.5% versus 5.3% and the mining sector grew at 5.5% versus (-) 7.5% YoY. The electricity sector grew ar 3.9% versus 9% YoY. Indian economy is set to expand at the world's fastest rate over the next 50 years to emerge as a major force globally, but it would still rank as the second worst in terms of prosperity of its citizens. Over the 50-year period between 2011-2060, India will register an annual economic growth rate of 4.9 per cent, as per a latest report by Paris-based international grouping of the world's leading economies, the Organisation for Economic Cooperation and Development ( OECD).