"The overall rise in demand for consumption goods failed to compensate for the fall in investment demand and it led to pulling down of the overall growth rate of the industry by less than one per cent in the current year," the study said.

Output growth of capital goods during April-Septmber, 2000, fell by 1.1 per cent while consumption goods sector showed a robust growth of 7.7 per cent, the study pointed out.

However, capital goods sector rose by 2.9 per cent in the previous year, the study added.

Painting a rosy picture even amidst turbulent growth, the study, however, said despite the progressive reduction in weighted average tariff from 87 per cent in 1990-91 to 20 per cent in 1998-99, Indian industry had shown `remarkable' resilience in meeting the challenges of globalisation.

"Even after reducing tariff to comply with commitments of World Trade Organisation (WTO), there was not any disruptions in domestic production," the study said adding "a seven to eight per cent growth could be possible next year."

The overall sales of listed corporates grew by a healthy 23 per cent during April-September this fiscal as against the 11 per cent in the previous fiscal, the study said.

Among the industrial sector, corporates fared well in information technology companies, polymers, aluminium, paints, paper and sugar, while in services sector, the housing finance and recreational service performed well, it said.

(PTI)