Capital Goods Output Up 11%

The production of capital goods has increased 11 per cent in the first quarter of the current fiscal as compared to a decline of 1.3 per cent in the same period last year, according to government figures. The growth in the capital goods sector is the first indication of what could be a recovery in the industrial growth which has been under pressure for a while.

In the same period, the growth in electricity generation has been 10.2 per cent against 5.4 per cent.

Sanctions by Indian financial institutions have increased by 104 per cent in April-June 1998 as against an increase of only 4.6 per cent in the same period of last year.

In the same period, disbursements by the FIs have increased 48.1 per cent against a decline of 16.1 per cent.

These figures are being looked upon as signs of an imminent revival in the country's economy.

Other areas of the economy, too, are showing sings of a turnaround, with the industrial production in the first quarter of 1998-99 rising to 5.4 per cent from 3.7 per cent in the corresponding period last year.

Direct tax collections have shown a growth of 41.1 per cent in April-June 1998, with corporate tax receipts increasing 121 per cent.

Excise revenues have increased 18.03 per cent in July this year as opposed to a growth of 5.22 per cent till June 1998. Similarly, customs revenues have risen 5.91 per cent in July 1998 after declining by 0.67 per cent till June this year.