Industrial growth slumps in June

By Our Special Correspondent

NEW DELHI, AUG. 10. Industrial growth fell to a dismal 1.5 per cent during June, bringing the growth in the first quarter of the current fiscal to 2.1 per cent. In contrast, industrial output rose by 5.9 per cent last year in the same month while quarterly growth (April-June) was 6.1 per cent.

According to the quick estimates of index of industrial production (IIP), released by the Central Statistical Organisation (CSO), the dip in growth was largely due to poor performance in the manufacturing and mining sectors. In a clear reflection of the economic slowdown, output in the critical manufacturing sector showed a minimal 1.9 per cent growth as against 6.1 per cent recorded in June 2000. The mining sector performed even worse with a negative 3 per cent growth, down from 4.4 per cent in the same month last year.

The CSO data show that the manufacturing sector which accounted for over 79 per cent weightage in the IIP, was weighed down by negative growth in the basic and capital goods sectors as well as growth deceleration in the consumer goods, both durables and non- durables sector.

The growth in the first quarter is estimated at 2.3 per cent against 6.4 per cent in the same period in 2000.

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