The government had hoped that some crucial sectors of the Indian economy, including infrastructure and consumer goods, would perform better this financial year, enriching the exchequer with higher tax payments. However, initial data showed that infrastructure, comprising eight core industries, had not led to any sharp growth in April, while the consumer durable sector had grown mainly because of low base effect.
Eight core sector industries, comprising 38 per cent of the Index of Industrial Production (IIP), expanded just 2.2 per cent in April 2012-13 against 4.2 per cent in the first month of 2011-12.
Yesterday, finance secretary R S Gujral had said some of the crucial sectors of the economy, including infrastructure and consumer goods, were expected to perform better in the current financial year. He also expected fertilisers to do better in 2012-13.
Production of fertilisers declined 9.3 per cent in April 2012 -13 year-on-year, according to the core sector data released last month.
Official data today showed that industrial production grew just 0.1 per cent in April, 2012-13, against 5.3 per cent in the corresponding month of last fiscal.
However, consumer goods sector expanded 5.2 per cent against 3.2 per cent a year ago. This included interest rate sensitive consumer durable sector which grew 5 per cent against 1.6 per cent a year ago.
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Yes Bank chief economist Shubhada Rao said,"Much of this upside was owing to a favourable base in April."
Among other sectors in infrastructure, electricity was the only saving grace in IIP. Electricity generation grew 4.6 per cent in April, 2012-13, though lower at 6.5 per cent in the corresponding month a year ago.
In IIP, 10 of 22 industrial groups showed contraction in April.
The industry group publishing, printing and reproduction of recorded media showed the highest growth of 52.7 per cent, followed by 29.4 per cent in medical, precision & optical instruments, watches and clocks and 21.4 per cent in radio, TV and communication equipment and apparatus.
On the other hand, the industry group electric machinery and apparatus posted a negative growth of 49.2 per cent, followed by 14.9 per cent in office, accounting and computing machinery and 9.1 per cent in wearing apparel; dressing and dyeing of fur.
Some of the important items showing high positive growth in April include telephone instruments including mobile phone & accessories (30%), newspapers’ (56.7%), conductor, aluminium (42.3%), boilers (38.1%), polythene bags (194.0%), cement machinery’ (193.1%), aerated Water & soft drinks (35.3%), cashew kernels (31.9%) and generator, alternator (37.2%).
Some of the important items showing high negative growth include cable, rubber insulated at (-) 85.2%, sugar at (-) 21.4%, vitamins at (-) 55.9%, colour TV sets at (-) 29.5%, furnace oil at (-) 26.0%, woollen carpets at (-) 47.0% and textile machinery at (-) 40.9 per cent.
Gujral had also expected banking, pharmaceuticals, software, cement, power, steel, two-wheelers and four-wheelers to perform better this fiscal as also profits of oil marketing companies if Brent crude is around $100 a barrel.
Passenger vehicle sales in April grew by 9.3 per cent in April, while the sales expanded 7.5 per cent in May. Data on other sectors would come subsequently.