Manufacturing falters, IIP rate dips further

By Our Special Correspondent

NEW DELHI, FEB. 12. With industrial growth sinking to 3.4 per cent in December 2000 from a high of 8.1 per cent in the same month a year ago, the overall index of industrial production (IIP) managed to notch up a growth rate of 5.7 per cent only during April-December 2000. The comparable figure for last year was 6.4 per cent.

Data released by the Central Statistical Organisation (CSO) reveal the mining sector grew 4.1 per cent during April-December against 0.5 per cent during the same period in 1999 while manufacturing was down to 5.9 per cent from 7 per cent.

Electricity generation was also lower at 4.8 per cent against a 7.7 per cent growth.

Figures for December alone show that mining grew 3.6 per cent, up from 0.7 per cent in December 1999, manufacturing by 3.3 per cent, down from 9.3 per cent, and electricity generation by 3.8 per cent, down from 5.2 per cent.

Use-based statistics reveal a similar trend. During April- December, basic goods production was up 4.8 per cent against a 5.2 per cent growth while capital goods output was up only 3.2 per cent against a 7.5 per cent growth. Intermediate goods registered a 4.7 per cent growth against 9.1 per cent while consumer goods were up 8.5 per cent against a 5 per cent growth in 1999. In this segment, consumer durables were up 17.5 per cent against 14 per cent and consumer non-durables up 5.7 per cent against 2.2 per cent.

Data for December alone show that basic goods production was up 2.1 per cent against 5.2 per cent, capital goods by 1.6 per cent against 2.9 per cent and intermediate goods by 3.3 per cent against 12.1 per cent. Consumer goods production was up 5.3 per cent against 9.4 per cent and in this segment, consumer durables were up 6.3 per cent against 21.1 per cent and consumer non- durables by 4.9 per cent against 6.4 per cent.

The CSO data also show that 11 out of the 17 two-digit industry groups have show positive growth during December 2000 as compared to the same month in 1999. Rubber, plastics, petroleum and coal products have shown the highest growth of 16.3 per cent followed by 14 per cent for other manufacturing industries and 10.7 per cent for wood and wood products; furniture and fixtures.

On the other hand, non-metallic mineral products have shown a negative performance of 7.3 per cent followed by a negative 7.2 per cent in case of jute and other vegetable fibre textiles (except cotton) and a negative 4.1 per cent in basic metals and alloy industries.

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