Manufacturing sector grows 12.7% in May

Growth rate against Last year's 10% shows good bouyancy

Increase in demand coupled with better availability of raw materials has led to bouyancy in the manufacturing sector which registered a growth of 12.7 per cent during May this year, against 10.7 per cent during the corresponding period last year.

Senior industry ministry officials told Business Standard that present trends, based on preliminary data, indicated that the manufacturing sector which accounts for 80 per cent of the index of industrial production was showing signs of a healthy pick-up. 'The growth of over 12 per cent coming on the back of a 10 per cent growth in May last year indicates good bouyancy in the sector,' an official said.

Officials pointed out that several industrial sectors were showing good growth during May. Sectors like basic chemicals and chemical products registered a growth of 18.3 per cent while machinery and equipment registered a growth of 16.2 per cent.

Among the user-based indsutries the capital goods sector has shown the highest rate of growth of 20.7 per cent. Transport equipment witnessed a growth of 15.7 per cent while metal products except machinery grew at 13.3 per cent.