OTHERS

Industrial output stagnates

NEW DELHI, JULY 12. The robust performance on the industrial front for well over a year came to a halt with industrial growth decelerating to 5.5 per cent in May this year from 12.2 per cent in the previous month. The industrial production had grown at 7.6 per cent in May 1999.

The manufacturing sector, accounting for nearly four-fifth of the total weight of index for industrial production (IIP), registered a lower growth rate of 5.8 per cent in May as against 8.9 per cent in the same month last year.

According to quick estimates of IIP released by the Central Statistical Organisation (CSO), the cumulative growth rate during the first two months of the current fiscal was marginally lower at 5.5 per cent against 5.6 per cent registered during April-May 1999.

The decline could be due to change in the basket of IIP which has been incorporated and accordingly growth rates in the case of certain industry segments have undergone some change, the CSO said.

The manufacturing sector grew by 5.9 per cent against 7.1 per cent growth registered in the same period last year.

The industrial growth slumped despite better performance in the mining sector which grew by 2.3 per cent in May as compared to 0.3 per cent last year, while the electricity sector registered a higher growth rate of 5.4 per cent against 3.3 per cent.

The cumulative growth rate in mining during the first two months of current fiscal was 3.6 per cent compared to a negative growth rate 0.9 per cent in April-May 1999.

In the electricity sector, the cumulative growth declined to 4.5 per cent this year from 4.7 per cent in 1999. The consumer goods segment registered a growth rate of 10 per cent in May as against 2.9 per cent posted in the same month last year. The basic goods sector grew by 5.9 per cent during May against 2.1 per cent last year. The cumulative growth in April-May stood at 5.8 per cent against 2.7 per cent in 1999.

The capital goods segment witnessed a sharp decline and it registered a negative growth rate of 2.1 per cent in May as compared to 16.4 per cent last year.

The growth in the intermediate goods segment also remained subdued during the month at 3.7 per cent against 15.8 per cent in May 1999. The cumulative growth in April-May 2000 was also low at 4.1 per cent against 11.9 per cent last year.

The consumer durables sector grew by 28.8 per cent in May this year as compared to 12 per cent registered last year and the cumulative growth in the first two months was 22.8 per cent this year and 14.1 per cent last year.

The consumer non-durable goods segment also posted a higher growth rate of 4.6 per cent in May 2000 against 0.5 per cent in May 1999, the CSO said.

- PTI