Industrial growth dips to 3.3%

Industrial growth dips to 3.3%
PRESS TRUST OF INDIA

NEW DELHI, JAN 12: A lacklustre performance by the manufacturing sector coupled with negative growth rate in the mining sector pulled down the industrial growth rate in November, 1999 to 3.3 per cent compared to 5.2 per cent in the corresponding period last year.

The index of industrial production (IIP) for April-November, 1999 however, stood higher at 6.4 per cent as against 3.6 per cent in the same period a year ago. While the manufacturing sector growth declined to 3.4 per cent in November, compared to six per cent in the previous fiscal, the mining sector posted a negative growth rate of 0.8 per cent, up from minus 2.6 per cent in the year-ago period. Electricity sector posted an impressive growth of 7.1 per cent in November as against 6.2 per cent recorded during the same month in 1998.

The growth in manufacturing sector, which has more than two-third of the total weightage in the IIP, in April-November period, was up at 6.9 per cent as compared to 3.8 per cent in the previous financial year.

The mining sector continued to reel under recessionary trends with the sector clocking a negative 0.8 per cent growth in the first eight months of the current fiscal compared to nil growth rate recorded in the same period last year.

The modest growth rate of 3.3 per cent in November and 6.4 per cent in April-November period is compared to 8.7 per cent in October, 1999 and 6.9 per cent during the April-October period of the current financial year.

Boosted by the overall industrial upswing in the domestic industry, the electricity sector grew by 7.9 per cent in April-November, 1999. According to the aggregated use-based index of industrial production, basic goods sector recorded a growth of 3.8 per cent in November compared to a meagre 1.5 per cent during the same period last fiscal.

The growth in capital goods and intermediate sectors slipped down to 3.8 per cent and 0.9 per cent respectively as against 13.0 and 9.5 per cent in November 1998. Consumer goods sector continued to grow steadily recording a 5.3 per cent growth in November, 1999 as against 2.9 per cent in the year-ago period. However, growth rate of consumer durables sector declined to 5.3 per cent as against 9.9 per cent in the same period last year. Consumer non-durables segment posted an impressive 5.3 per cent growth in November, 1999 up from 1.0 per cent in the same month last year.

Nine out of 17 two digit industry groups recorded positive growth during the month of November, 1999 with the wool, silk and man-made fibre textiles showing the highest growth rate of 24.3 per cent. While the machinery and equipment other than transport equipment grew by 11.2 per cent, the paper and paper products segment posted a growth rate of 9.6 per cent in November to be followed by beverages, tobacco and related products registering a growth of 8.1 per cent in November, 1999.