Industrial growth up at 6.2% in Dec

Manufacturing grows 6.5%

Industrial output rose 6.2 per cent in December 2003 on top of a similar growth in December 2002. The average industrial growth in the April-December 2003-04 period was 6.3 per cent compared with 5.5 per cent in the corresponding period last year.

While the growth in December was much lower than the 7.5 per cent registered in November 2003, economists are not reading much into the numbers. "These figures are based on sketchy data and are bound to be revised later," said an official.

Machinery, transport equipment, metal products, basic chemicals, paper, printing and publishing, leather and fur products did well, reporting double digit growth in December 2003.

Sectors, which reported a fall in production in December 2003 against December 2002, included textiles, wood and furniture and food products.

Along with the quick estimates of IIP for December 2003, the Central Statistical Organisation (CSO) has revised the estimate for September 2003 from 6.5 per cent to 7.5 per cent and that for November from 7.4 per cent to 7.5 per cent.

The index for manufacturing grew 6.5 per cent in December 2003, marginally below 6.6 per cent in the corresponding month last year.

The mining sector slowed with the growth at 4.1 per cent, down from the 6.1 per cent reported last year. Electricity production was, however, up at 4.9 per cent against 2.8 per cent in December 2002.

As per the use-based classification, capital goods grew 9.8 per cent against 12.6 per cent in December 2002. The growth in basic goods was 4.7 per cent, the same as in December 2002.

The healthy growth level in these segments indicated continued improvement in the economy, said economists.

Intermediate goods grew 9.2 per cent, on top of 4 per cent in December 2002. Consumer goods reported a growth of only 3.8 per cent despite the rise in agricultural incomes, which was expected to push up the rural demand. This growth, however, was against a healthy 8.1 per cent in December 2002.

Growth in non-durables was a mere 1.9 per cent, on top of 11.5 per cent in December 2002, while durables grew 10.8 per cent in December 2003 on top of a 3.2 per cent dip in production in the corresponding month of 2002.

In the first nine months of the year, manufacturing grew 6.8 per cent against 5.7 per cent in the corresponding period last year. Electricity reported 3.4 per cent growth, on top of 3.8 per cent last year, while the mining sector reported a dip in growth from 5.8 per cent in the first three quarters of 2002-03 to 4.0 per cent in April to December 2003-04.

In the nine-month period, capital goods production went up 9.6 per cent against 10.7 per cent in 2002-03 while basic goods production was at 4.5 per cent against 4.8 per cent in April to December 2002-03.

Consumer durables grew 8.3 per cent as against a 5.6 per cent dip in production in 2002-03 while non-durables grew 7 per cent against 12.7 per cent in the first three quarters of 2002-03.