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Industrial growth slows to 3.6% in Feb - Times Of India
Industrial growth slows to 3.6% in Feb
TNN, Apr 12, 2011, 02.05am IST

NEW DELHI: Industrial growth moderated to 3.6% in February, compared to 15.1% a year ago on account of a slowdown in manufacturing and mining sectors. Within manufacturing, the real culprit was capital goods, with production falling over 18% this February along with a slower pace of expansion in basic and intermediate goods.



Even the government seemed to be on the same page. "Our expectation is that the next month (March) will not be a good month. So, there is one more difficult month ahead for us which is the month of March... we will see no growth in the industrial sector. But I do expect a big turnaround in the month of April," chief economic advisor Kaushik Basu told reporters.

This is the fourth straight month when growth has remained below 4%. Though economists had expected growth to remain in low single digits, the numbers released by the Central Statistics Office on Monday were lower than their projections. Economists said part of the reason for the moderation was the base effect. Even in good times, industrial growth is 9-10% but with industrial output expanding 15% in February 2010, the base effect was a huge factor, economists said.

In addition, higher interest rates are affecting capacity addition decisions. "The impact of higher interest rates will play out through 2011," said D K Joshi, chief economist at rating agency Crisil. On Saturday, R P Singh, secretary in the union industry department, had said at a seminar that there was need to strike a balance between growth and inflation as very high interest rates could affect the former.

Economists also said that companies were waiting to gauge if the consumption boom would last and were doing so by using every bit of capacity available with them. The moment they face an even more severe crunch, they would automatically start expanding capacity even if interest cost remained high.

"Impact of environmental clearances and transportation bottlenecks in the coal sector, coupled with a high base effect, resulted in mining production slowing to 0.6%," added Citi economists Rohini Malkani and Anushka Shah. Notwithstanding the slower pace of expansion in industrial production, economists said that the central bank is expected to continue with its rate hike cycle. The overall expectation is that key policy rates would go up by another 25 basis points (100 basis points equal one percentage point) when RBI releases its annual policy next month. After all, they said, inflation is a bigger threat.

Not a big issue like they said
But I do expect a big turnaround in the month of April," chief economic advisor Kaushik Basu told reporters.

Exports cross $200 bn mark in Feb, to touch $235 bn in 2010-11 - Times Of India
 
it does not tell us anything good. export is always not good for a country when the industry and economy are not doing well.

We have economy growth almost 10% a year and industry growth which you posted is about a single month feb


But yes your last line suits your county better than any one else cause last year your growth rate is less than 3%
 
India allows 100 per cent FDI in some areas of farm sector

TUNING the policy norms further to attract declining foreign investment, in a significant development, India on March 31 announced allowing 100 per cent Foreign Direct Investment (FDI) in the agriculture sector including seeds, plantation, horticulture and cultivation of vegetables.

According to the circular by the Department of Industrial Policy and Promotion released on "Consolidated FDI Policy - Circular 1 of 2011’’, 100 per cent FDI has now been allowed in development and production of seeds and planting material, floriculture, horticulture, and cultivation of vegetables and mushrooms under controlled conditions. The policy will come into effect from April 1.

Besides, animal husbandry (including breeding of dogs), pisciculture, aquaculture under controlled conditions and services related to agro and allied sectors have also been brought under the 100 per cent FDI norm. Similarly, the tea sector has also been brought under the 100 per cent norm.

The DIPP has imposed certain conditions for companies dealing with development of transgenic seeds and vegetables wanting to take the 100 per cent FDI route.

According to the Circular, when dealing with genetically modified seeds or planting material the company is supposed to comply with safety requirements in accordance with laws enacted under the Environment (Protection) Act on the genetically modified organisms; any import of genetically modified materials, if required, shall be subject to the conditions laid down vide Notifications issued under Foreign Trade (Development and Regulation) Act, 1992; the company shall comply with any other law, regulation or policy governing genetically modified material in force from time to time; undertaking of business activities involving the use of genetically engineered cells and material shall be subject to the receipt of approvals from Genetic Engineering Approval Committee (GEAC) and Review Committee on Genetic Manipulation (RCGM); the Import of materials shall be in accordance with National Seeds Policy.

Further it states the term "under controlled conditions’’ covers the following: Cultivation under controlled conditions for the categories of floriculture, horticulture, cultivation of vegetables and mushrooms is the practice of cultivation wherein rainfall, temperature, solar radiation, air humidity and culture medium are controlled artificially. Control in these parameters may be effected through protected cultivation under green houses, net houses, poly houses or any other improved infrastructure facilities where microclimatic conditions are regulated anthropogenically.

In case of animal husbandry, the term under controlled conditions includes: rearing of animals under intensive farming systems with stall-feeding. Intensive farming system will require climate systems (ventilation, temperature/humidity management), health care and nutrition, herd registering/pedigree recording, use of machinery, waste management systems. Poultry breeding farms and hatcheries where microclimate is controlled through advanced technologies like incubators, ventilation systems etc.

In the case of pisciculture and aquaculture, it includes: aquariums hatcheries where eggs are artificially fertilised and fry are hatched and incubated in an enclosed environment with artificial climate control.

(http.//www.thehindu.com)
 
We have economy growth almost 10% a year and industry growth which you posted is about a single month feb
that GDP growth is likely to be true. see your industrial growth.

But yes your last line suits your county better than any one else cause last year your growth rate is less than 3%
no it is about india. pakistan has a strong base for industrial revolution.
 
Chachajan source that you poster is only for a single month not for a year

this is industrial growth for december 2010 16.8% :woot:
Highest industrial growth recorded in 20 yrs at 16.8% - Times Of India
My source is uptodate. Now Indias economy is shrinking. it has just started.


What so special your industry produces ????
we have many innovative brains. our industrial and technological base is strong.


http://www.defence.pk/forums/curren...s/103799-two-thumbs-up-pakistani-techies.html
 
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