Industrial production Output @ -2%

For Dec 08, growth in industrial production, at -2.0%.

Industrial production was also affected due to a high base in Dec 07. Although there has a y-o-y decline, there was a significant improvement on a m-o-m basis. Mining and electricity stayed positive at 1.0% and 1.6%, respectively, whereas manufacturing reported a negative number (2.5%) for Dec 08.

There has been a decline in food products, machinery and transport equipment in the manufactured sectors, which contributes 80% of industrial production. In the use based category, there has been a decline in consumer durables and intermediate goods. Consumer durables is correcting faster than expected.

Given that manufacturing activity is more exposed to international demand, the results show that the serious global demand destruction has affected India. The ministry of commerce had earlier mentioned that there might have been a 20% decline of exports in Jan 09.