Wednesday, September 5, 2012

UNIDO Findings on Industrial Growth

According to a Report of United Nations Industrial Development Organization (UNIDO) the world manufacturing output rose by 5.5. per cent in the third quarter of 2011, compared to the same period of 2010. This growth is mainly attributed to developing countries, whose manufacturing output increased by 13 per cent.

There has been some moderation in the growth rate of industrial production as measured in the Index of Industrial Production (IIP). The IIP growth rate in the fourth quarter (Jan-March) 2011-12 was 0.6% as compared to the growth rate registered of 7.9% in the corresponding quarter of previous year (Jan-March) 2010-11.

The major sectors that have adversely affected IIP growth are manufacturing and mining. Major reasons for the decline in manufacturing include global economic uncertainty, sluggish domestic demand, hardening of interest rates etc., whereas regulatory and environmental issues, court orders, decline in international demand for metallic minerals etc. Are affecting production in the mining sector.

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