NEW DELHI, June 27: The industrial growth rate declined sharply in 1996-97 to 6.7 per cent as compared to 11.9 per cent in the previous year.

According to the latest quick estimates of Index of Industrial Production (IIP), the electricity and mining sectors grew by 3.8 per cent and 1.2 per cent during last year compared 8.1 per cent and 7.4 per cent respectively in the previous year.

The growth rate of manufacturing sector was comparatively better at 8 per cent during 1996-97 as against 13 per cent in 1995-96, the figures released by Central Statistical Organisation (CSO) today showed.

As per the used-based classification, the growth in basic goods sector was at 7 per cent in 1996-97 as against 8.4 per cent in the previous year while in capital goods it was 8.5 per cent compared to 17.7 per cent in 1995-96.

The consumer goods sector also took a severe beating with consumer durables growing at a paltry 4.3 per cent in 1996-97 compared to a whopping 36 per cent in the previous year.

The growth in consumer goods was at 3.9 per cent during 1996-97 compared to 12.9 per cent in 1995-96 while in consumer non-durables the growth rate was 3.8 per cent as against 7.2 per cent in the previous year.

The general index for March, the latest figures available, at 342.7 grew by 2.9 per cent compared to a growth of 9.7 per cent during the same month last year.

Eight out of the 17 two-digit industry groups have shown a positive growth during the last month of 1996-97 as compared to the same period the previous year.

Basic metals and alloys industries have shown the highest growth of 33.5 per cent followed by 24.9 per cent for the transport equipments and parts.

On the other hand, wood and wood products have shown a growth of (-) 12 per cent, followed by a growth of (-) 11.4 per cent in electrical machinery and parts and (-) 5.9 per cent in food products.

The indices of industrial production for the mining, manufacturing and electricity sectors for the month of march, 1997 stood at 344.9, 336, and 385.4 respectively.

Among the used-based classification the growth in intermediate goods during 1996-97 stood at 7.1 per cent compared to 10.7%.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.