MUMBAI, Aug 15: The Centre for Monitoring Indian Economy (CMIE) expects industrial production to grow by about four to five per cent in the first half of 1997-98 and thereafter pick up to around 8 per cent. The year (1997-98) is likely to end with a growth of six to seven per cent, CMIE said in its issue of the monthly review.

Central Statistical Organisation (CSO) reported 6.6 per cent growth in Indian production in 1996-97, but CMIE believes that the growth in the last year was lower at about 4.5 per cent.

According to computations by the ministry of industry based on statistics for 24 industries accounting for 50.37 per cent of the weight in the official index of industrial production (IIP), the overall growth of the industries covered was 2.8 per cent in April and 4.9 per cent in May 1997, CMIE said.

Growth during these first two months of the year came from fertilisers, aluminium and textiles. CMIE said the 24 industries thus still imply low growth rates in India, at best indicating a weak recovery. It said CMIE computations covering industries accounting for about 60% of the weight in the official IIP confirm a weak recovery.

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