IIP growth slumps to 2.6 p.c. in July

By Our Special Correspondent

NEW DELHI, SEPT. 12. Reflecting the current slowdown in the Indian economy, the Index of Industrial Production (IIP) grew just 2.6 per cent in July this year, down from a 5 per cent growth registered in the same month last year. The overall growth in industrial production has been dismal this fiscal, with the April-July 2000-01 index up only 2.3 per cent against a 5.9 per cent growth in the same period last year.

In July, the index for mining turned out to be negative 2.7 per cent against a positive 2 per cent growth in July last year. Manufacturing was up three per cent against 5.7 per cent while electricity generation was up 4.2 per cent against 2.6 per cent.

The April-July index for mining was a negative 0.8 per cent against a positive growth of 3.3 per cent while manufacturing was up 2.6 per cent against 6.2 per cent. Electricity generation was up 2.7 per cent against 4.4 per cent growth last year.

Use-based statistics released by the Central Statistical Organisation (CSO) also show that basic goods production was down 0.1 per cent in July this year against a growth of 4.2 per cent in July last year. Capital goods production was down sharply by 8.9 against 2.3 per cent growth last year while intermediate goods were up 3.3 per cent against 5.9 per cent. Consumer goods production was up 9.4 per cent against 6.1 per cent. In this segment, consumer durables were up 16 per cent against 20.3 per cent and consumer non-durables were up 6.7 per cent against 1.3 per cent.

The corresponding figures for April-July 2001 show that basic goods production was up 1.3 per cent (against 5.1 per cent), capital goods were down 6.1 per cent (plus 4.5 per cent) and intermediate goods were up 3.3 per cent (5 per cent). Consumer goods production was up 5.6 per cent (8 per cent) with consumer durables going up by 9.7 per cent (22.1 per cent) and consumer non-durables were up 4 per cent (3.6 per cent).

In the two-digit segment, 12 out of the 17 industry groups have shown positive growth in July 2001 as compared to the same month last year.

Leather and leather fur products have shown the highest growth of 19.1 per cent followed by 13.1 per cent in rubber, plastics, petroleum and coal products and 10.2 per cent in wool, silk and man-made fibre textiles.

On the other hand, jute and other vegetable fibre textiles (except cotton) have show a negative output of 20.9 per cent, followed by a negative 8.9 per cent in case of metal products and parts, except machinery and equipment and negative 7.8 per cent in wood and wood products, furniture and fixtures.

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