The index for industrial production (IIP) for the manufacturing sector, which accounts for three quarters of the total IIP weightage, has fallen from 139.1 in June to 137.8 in July.
The July index for all mining, manufacturing and electricity sectors stood at 135.6. This is 1.7 per cent higher than the IPP of July 1997, when it recorded a rise of 8.2 per cent, according to the Central Statistical Organisation.
The dismal show in July was reflected in all the three sectors of mining, manufacturing and electricity. Mining saw a growth of 2.9 against 4.2 in July last year, manufacturing a rise of 1.2 per cent against 8.5 per cent last year, while that in electricity was 5.1 per cent against 8.9 per cent in the previous year. The performance in July resulted in a lower growth of 4 per cent in April-July as compared to the 5.4 per cent growth achieved in the first quarter of this year.
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The IIP index which takes 1993-94 as base, shows that both manufacturing and electricity sectors fared poorly in July as compared to the performance in July 1997.
The index in July for the manufacturing sector was 137.8. The index for April-July was up only 3.7 per cent as compared to 5.6 per cent in the corresponding period last year.
The index for the electricity sector was 135.4 against 128.8 in July last year. But the performance in July was not much different from the index of 135 in June.
The mining sector reversed the negative 0.3 per cent growth in the first quarter by posting a 2.9 per cent growth in July, thereby taking the cumulative growth in April-July to 0.5 per cent. The slump in manufacturing in July could be traced to the negative growth in consumer goods as well as the lower growth rate in basic and intermediate goods.
The capital goods sector grew by 6.8 per cent in July to post a cumulative growth of 10.5 per cent.
The consumer goods sector recorded a negative 0.5 per cent growth in July mainly on account of a 4.7 per cent fall in consumer durables segment, popularly known as the white goods sector.
Consumer non-durables grew 0.7 per cent during the month under review to post a cumulative growth of 2.5 per cent in April-July against a negative 1.5 per cent in the same period a year ago.
The negative growth in consumer goods has reduced the cumulative growth in this segment so far this year to 2.1 per cent. This is, however, higher than the 0.1 per cent growth achieved in April-July last year.