Industrial growth continued to dwindle with the index of industrial production (IIP) growing by a mere 1.8 per cent in August, as compared to a five per cent growth in August 2000. The IIP growth in the April-August period this year has averaged 2.2 per cent, down from 5.6 per cent in the corresponding period last year.
Poor performance by the manufacturing and mining sectors has pushed down industrial growth from 2.4 per cent in July this year. In August 2001, the manufacturing sector, which accounts for 80 per cent of the index, grew by two per cent as compared to 5.5 per cent growth in August 2000.
Mining grew by 0.1 per cent, down from a four per cent growth in the corresponding month last year. Electricity was the only sector to do better than last year with a 1.9 per cent growth in August 2001 as against one per cent growth registered in August 2000.
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The performance of the capital goods sector continued to worsen. Production declined by 12.3 per cent in August 2001 as compared to August 2000, a further decline from the 8.9 per cent fall in production in July 2001. The sector had reported 3.5 per cent growth in August 2000.
According to the use-based classification, basic goods production went up by 2.7 per cent, an improvement from the 0.1 per cent fall reported in July 2001. However, the progress was on account of the lower base effect. In August 2000, the sector reported a 2.9 per cent growth, while it grew 4.2 per cent in July 2000.
The intermediate goods sector reported a 2.1 per cent growth, down from 6.9 per cent in August 2000. Consumer goods grew by 5.8 per cent as against 5.9 per cent growth in the corresponding month last year.
Nine out of the 17 two-digit industry groups have shown positive growth during August 2001, down from 12 groups in July 2001.
In the April-August period this year, manufacturing has grown by 2.5 per cent as against 6.1 per cent in the corresponding period last fiscal. Electricity declined by 2.6 per cent as against a 3.8 per cent growth last year and mining by 0.7 per cent as against 3.4 per cent. The capital goods sector experienced an eight per cent decline in production in same five-month period, as against 4.3 per cent growth last year.