Industrial output remains sluggish in July, IIP dips to 2.6 per cent

Our Economic Bureau

New Delhi, Sept 12: Industrial output remained sluggish in July with the index of industrial production (IIP) decelerating to 2.6 per cent from 5 per cent posted in the same month of last year.

The industrial growth rate in July was, however, higher than the abysmal 1.5 per cent growth rate recorded in the previous month.

According to quick estimates of IIP released by the Central Statistical Organisation (CSO) on Wednesday, the manufacturing sector, which accounts for more than two-third weightage in the index, grew by 3 per cent in the month as against a 5.7 per cent growth recorded in July 2000.

The mining sector recorded a negative growth of 2.7 per cent in July 2001 compared to a 2-per cent growth achieved in the same month of last year. The electricity sector, however, managed a higher growth rate of 4.2 per cent compared to a 2.6 per cent growth recorded in July 2000.

The cumulative growth rate in the April-July 2001-02 period was 2.3 per cent compared to 5.9 per cent achieved in the same period last fiscal. Manufacturing sector grew by 2.6 per cent in the four months compared to a 6.2 per cent growth posted in the same period last year.

Electricity posted a growth of 2.7 per cent against 4.4 per cent recorded last year while mining recorded a negative growth of 0.8 per cent against 3.3 per cent growth achieved in first four months of the last fiscal.

According to use-based classification, consumer goods grew by an impressive 9.4 per cent in July 2001 as compared to 6.1 per cent recorded in July 2000. While consumer durables grew by 16 per cent against 20.3 per cent posted last July, growth in consumer non-durables during the month was 6.7 per cent as against a meagre 1.3 per cent achieved in the same month last year.

The capital goods sector continued its slack performance during July 2001 and posted a negative growth of 8.9 per cent compared to 2.3 per cent recorded last July. The basic goods sector too grew at a negative 0.1 per cent against 4.2 per cent recorded last year while the intermediate goods sector grew by 3.3 per cent against a 5.9 per cent growth registered in July 2000.

In the April-July 2000-01 period, the consumer goods sector grew by 5.6 per cent against 8 per cent growth recorded in the same period last year. The capital goods sector posted a negative 6.1 per cent growth against 4.5 per cent achieved in the first four months of last year.

The basic goods sector grew by 1.3 per cent in the four-month period against 5.1 per cent registered last year while the intermediate goods sector grew by 3.3 per cent compared to 5 per cent registered in the same period last year.