Industrial production growth rate declined to 2.3 per cent in the first quarter of this fiscal from the 5.9 per cent growth in the corresponding period in 2000-01. The index of industrial production (IIP) grew by 2.6 per cent in July 2001 as against 5.0 per cent in July 2000.
While the mining sector reported a 0.8 per cent fall in production between April-July 2001-02, manufacturing growth was down to 2.6 per cent from 6.2 per cent in Q1 last year and the electricity sector grew by 2.7 per cent as against a 4.4 per cent growth in the corresponding period last year.
The performance of the capital goods sector continued to worsen with production continuing to fall. The sector reported a 6.1 per cent decline in Q1 of 2001-02 as compared to a 4.5 per cent growth in Q1 last year. Basic goods production grew by 1.3 per cent in this period as against a 5.1 per cent growth last year. Consumer goods grew by 5.6 per cent, down from 8 per cent growth last year.
The Central Statistical Organisation (CSO) has also revised the industrial growth rate for June 2001 from 1.5 per cent to 2.7 per cent on account of a 1.4 per cent increase in the index for the manufacturing sector. The index was altered due to the upward revision in the production data reported by the office of the Salt Commissioner and Directorate of Vanaspati, Vegetable Oils and Fats, said an official release.
The IIP for April 2001 has also been revised and the growth rate for the month is now down to 2.6 per cent as against the growth rate of 3.2 per cent reported in the second revision.
As per the use-based classification, capital goods production fell by 8.9 per cent in July 2001 as against a 2.3 per cent growth in July 2000 and a 7.6 per cent fall in June 2001. The consumer goods sector growth went up to 9.4 per cent in July 2001, as against 6.1 per cent in July 2000.
The growth in consumer goods indicates that demand is beginning to pick up, say economists. The consumer durables sector has reported 16 per cent growth in July 2001 as compared to 20.3 per cent in July 2000 while the consumer non-durables segment has grown by 6.7 per cent as against 1.3 per cent growth in July last year.
