Industrial growth fell to almost half in 1998-99, the growth rate being 6.6 per cent in April-March 1997-98. This is reflective of recessionary conditions prevailing in the economy, with mining and quarrying showing a steep fall.

According to latest data released by the finance ministry on various economic parameters, growth rate of the manufacturing sector increased to 4.1 per cent. It was 6.7 per cent in the corresponding period in the previous year.

However, the growth rate of mining and quarrying decreased to 1.7 per cent in April-March, 1998-99, as against an increase of 5.9 per cent in 1997-98. Production in basic goods increased by 1.6 per cent (against an increase of 6.5 per cent), capital goods increased by 10.2 per cent (against 5.3 per cent), intermediary goods registered an increase of 6.0per cent (against 8.1 per cent), consumer goods increased by 2.1 per cent (against 5.7 per cent), consumer durables increased by 3.5 per cent (against 7.8 per cent).

Consumer durables increased by 1.8 per cent in April-March, 1998-99, against an increase of 5.2 per cent in the corresponding period the previous year. Foodgrain stocks stood at 21.66 million tonnes on April 1, 1999.

Core infrastructure sectors achieved an average growth rate of 2.5 per cent in April-March, 1998-99, compared with 5.4 per cent in the corresponding period the previous year. A silver lining was the low prevailing inflation rate which was 3.7 per cent in terms of WPI as on May 8, 1999, compared to 6.6 per cent a year back.

The rupee appreciated against the Deutsche Mark and the French Franc, was stable against the pound sterling and depreciated against the dollar and yen in April, 1999. Exports increased by 3.7 per cent in dollar terms in April-March, 1998-99.