Industrial growth dips in 9 months

Industrial growth dips in 9 months
ENS ECONOMIC BUREAU

FEB 13: The data released by different wings of the government is providing a mixed picture of the economy. While the industrial production, excise and customs collection remained sluggish, the Income Tax realisation and exports have recorded robust growth.

The Index of Industrial Production (IIP) figures for the period April-December 2000 reveals deceleration in industrial growth. The IIP growth rate for the nine-month period slid to 5.7 per cent from 6.4 per cent during the corresponding period last year. During December, the IIP growth rate was 3.4 per cent as against 8.1 per cent in the corresponding month previous year.

The deceleration on the industrial front found its reflection in revenue realisation, especially with regard to indirect taxes. The collection of custom duties during April-January 2000-01 was up by meager 1.43 per cent over the realisation during the corresponding period in the previous financial year. The excise collection during the period was up by 12.03 per cent.

Although corporation tax did well during the course of the financial year, in January realisation decreased by 25.23 per cent. However, during the April-January period the corporate tax collection went up by 23.62 per cent.

On the positive side, buoyancy in Income Tax collection continued even in January. During the period April-January, Income Tax collection registered an increase of more than 35 per cent. Also with the exports started picking up, the year might end with a growth rate of 20 per cent.

Total tax collection during the period April-January amounted to Rs 1,42,310 crore registering an increase of 13.54 per cent. Tax collection during the month of January was up by 8.68 per cent as compared to realisation in the corresponding month previous fiscal.

As far as industrial growth is concerned, the sluggish performance has been largely due to poor growth in the manufacturing and electricity sectors. The quick estimates of IIP revealed that industrial performance in December was particularly low, with the sector growing at only 3.4 per cent compared to a 8.1 per cent growth in December 1999.

During April-December period, the manufacturing sector registered a growth of 5.9 per cent and electricity output grew by 4.8 per cent against a growth rate of 7 per cent and 7.7 per cent respectively during the same period of the previous year.

The mining sector grew by 4.1 per cent during the period against 0.5 per cent in the corresponding period of the last fiscal. In December 1999, manufacturing registered a 3.3 per cent growth, electricity grew at 3.8 per cent while mining recorded a 3.4 per cent growth against respective growth rates of 9.3 per cent, 5.2 per cent and 0.7 per cent in the same month last year.

In the use-based category, growth in consumer durables fell to 6.3 per cent in December compared to 21.1 per cent in December 1998. During April-December period of the current fiscal, the growth figure for the sector was high at 17.5 per cent compared to 14 per cent in the first nine months of the previous financial year.

Non-durables grew at 4.9 per cent in December against 6.4 per cent in the same month in the previous fiscal. In the first nine months, the sector grew at 5.7 per cent against a low 2.2 per cent growth last year.

The capital goods, intermediate goods and basic goods sectors registered respective growth rates of 3.2 per cent, 4.7 per cent and 4.8 per cent in the first nine months of the current fiscal. The growth rates in the comparable period of the previous year were 7.5 per cent, 9.1 per cent and 5.2 per cent respectively.