IIP Data January 2011 at 3.7%

Industrial growth continued to be sluggish, improving only marginally to 3.7 per cent in January against 2.5 per cent December 2010 and 16.8 percent in January 2010.

Some economists attribute the low numbers to the high base of last year, but others do not agree. However, all point out that industrial growth is not as bad as is shown by these numbers. In January last year, industrial growth stood at 16.8 per cent.

Economists say that other pointers to the economy like exports, non-oil imports and corporate results indicate healthy industrial activities.

India's exports continued to be on the uptrend and expanded by 32.4 per cent to touch $ 20.605 billion in January 2011 from $ 15.557 billion in the same month of 2010. Non-oil imports during January 2011 were estimated at $ 20.734 billion, which was 23.8 per cent higher than non-oil imports of $ 16.754 billion in January 2010.

The slow manufacturing growth could be attributed to volatile capital goods whose production contracted 18.6 per cent in January against huge 57.9 per cent growth a year ago. In December also, capital goods output declined 13.7 per cent.

The consumer goods category continued to be robust, growing 11.3 per cent in January against a mere 0.4 per cent a year ago.