Industrial production growth rates in the first half of the current fiscal year (April-September 1998) show a small improvement over the growth rates in the first quarter (April-June 1998).
According to figures released by the Associations Council (Ascon) of the Confederation of Indian Industry, 40 industry sectors have recorded improved growth rates in April-September 1998 (year-on-year) compared with April-June 1998 (year-on-year), 32 have recorded slower growth while 11 show no change.
However, a comparison of the production growth rates in the first half of 1998-99 with the rates recorded in the corresponding period of 1997-98 indicates a continued slowdown with 41 sectors recording slower production growth rates and 39 registering improved rates. Five sectors showed no change.
The growth rates have been calculated using information provided by member companies of CII and its 69 affiliated associations, which in most cases account for over 65 per cent of the total industry output.
At the Ascon meeting held in Chandigarh on Saturday, which was addressed by Mohan Guruswamy, advisor to the finance minister, the key domestic issues discussed were demand recession, no pick-up in investment, pressure on prices, government policies on housing and oil seeds that have been announced but not implemented, infrastructure constraints, excise and customs duty anomalies, import of seconds and the downturn in the capital markets.
The key exports issues discussed were the South Asian crisis, anti-dumping cases, high freight rates, infrastructure constraints and issues related to the World Trade Organisation.
During April-September this year, the overall growth in the automobile sector, considered the engine of economic growth, was higher at 7 per cent (against -5 per cent in April-September 1997). However, this was fuelled mainly by a 15 per cent growth (-7 per cent) in two-wheelers.
Elsewhere, the growth rate was -53 per cent in medium and heavy commercial vehicles (-14 per cent), -20 per cent in light commercial vehicles (-26 per cent), -3 per cent in cars (5 per cent), -15 per cent in three-wheelers (6 per cent), and -20 per cent in multi-utility vehicles, which had shown a robust growth of 9 per cent in the period of comparison.
The automobile woes were reflected in the automotive components sector, which registered a dismal -12 per cent growth against a moderate 4 per cent in the period of comparison. Automotive tyres however bucked the trend to register a growth of 9 per cent (2 per cent).
