While the industrial growth figures seem to indicate that all is well with the economy and that the drought has not had an impact on the index of industrial production (IIP), the disaggregated picture is a little different, feel economists.
The IIP growth rate has been on the upswing, increasing from 4.1 per cent in April 2002 to 6.4 per cent in July 2002. The average IIP growth in the first quarter was 4.1 per cent and it fared even better in July, the first month of the second quarter.
However, a look at the components shows that the growth is not very broad-based, say economists. Basic goods and consumer non-durables have been the basic drivers of recovery, however the growth in the latter segment could drop over the next two quarters, they add. Consumer durables will pick up only if the rabi crop is good. Intermediate goods have not been doing too well.