Industrial growth decelerates

By Our Special Correspondent NEW DELHI, JULY 12. Industrial growth continues to decelerate with a 1.9 per cent rise in output recorded in May as against 6 per cent last year. The overall growth during April and May, the first two months of the current fiscal, is thus estimated at 2.6 per cent as compared to 6.2 per over the same period in 2000-01.

According to the quick estimates of Index of Industrial Production (IIP), the manufacturing sector continued to be largely responsible for the slowdown in growth as it rose by a mere 1.6 per cent in May as against 6.2 per cent in the same month last year.

During April-May, the manufacturing sector grew at 2.6 per cent as against 6.6 per cent in the same period in 2000-01.

The latest estimates show that the electricity sector did somewhat better with a 2.8 per cent growth in May. This is, however, much lower than the 6.4 per cent growth recorded in May last year. The only sector which has shown marked improvement is mining where output rose by 4.1 per cent as against 2.6 per cent in the same month last year.

The cumulative growth in the electricity sector for April-May is estimated at 2.2 per cent as against 5.1 per cent last year. In the case of mining, the overall growth for these two months is more healthy at 3.8 per cent as against 3.3 per cent in April-May 2000.

According to the use-based classification of the index, basic goods output rose by 2.4 per cent while intermediate goods increased by 1.2 per cent and capital goods showed a negative growth of 0.9 per cent.

Consumer durables and consumer non-durables recorded 6.2 per cent and 1.9 per cent respectively with the overall growth in consumer goods being 3.1 per cent.

Among the industry groups, there has been a dip of 14 per cent in wood and wood products followed by 12.5 per cent in metal products and parts and 9.7 per cent in jute and other vetable fibre textiles except cotton.

On the positive side, leather and fur products have shown the highest growth of 13.6 per cent followed by 12.5 per cent in other manufacturing industries and 6.1 per cent in beverages, tobacco and related products as well as in rubber, plastic, petroleum and coal products.

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