 "Net industrial growth for 2012-13 lower than previously estimated: Annual Survey")
India's net industrial growth rate in 2012-13 was the slowest in a decade, at 1.8%, show revised estimates in the Annual Survey of Industries(ASI) data, released on Tuesday.
The provisional estimates released earlier had shown projected the rate to be 2.8%.
Industrial growth here is measured in value terms on the basis of net addition.
As the ASI estimates are used to revise gross domestic product (GDP) figures, economic growth for 2012-13 is also likely to be revised. The exact magnitude of the revision is uncertain, as the Central Statistics Office (CSO) has in its latest series also incorporated data from the MCA21database of the corporate affairs ministry, in addition to the ASI estimates. ASI is more comprehensive than the index of industrial production (IIP) in that it also covers small and medium industries — all units employing at least 10 workers and using power or 20 workers even if not using power.
The revised estimates showed gross capital formation grew at a faster pace of 9.8% in 2012-13, against provisional estimates of 9.3% growth without adjusting for inflation.
During 2011-12, capital formation had contracted 8.7%. However, growth in 2012-13 remained way lower than what was recorded during 2009-10 (38.3%) and 2010-11 (23.2%).
The survey, which comes with a lag of two years, showed profits of firms surveyed contracted 1.6%, declining from Rs 4.5 lakh crore in 2011-12 to Rs 4.4 lakh crore in 2012-13. But the pace of contraction according to the revised estimates was lower than that observed in the provisional estimates.
SLOW EXPANSION
SLOW EXPANSION