Industrial Growth Dips To 6.8%

According to the data on the full index of industrial production (base: 1980-81=100) released yesterday, while the growth rate in the manufacturing sector slowed down to 9.1 per cent in June as compared with 11.1 per cent in June 1995, electricity suffered a decline of 1.7 per cent as compared with 14.6 per cent. Similarly, mining recorded a marginal growth of two per cent as compared with 17.4 per cent last year.

The industrial growth rate has witnessed a sharp drop in June after having accelerated to 11.5 per cent in May from a level of 8.1 per cent in April. In 1995, the growth rate was 15.9 per cent in April, 15 per cent in May and 12.2 per cent in June.

 

The annual growth rates in the manufacturing segment have dropped from 13.1 per cent in May to 9.1 per cent in June. Over the same period last year, the growth rates were much more buoyant at 15.7 per cent and 11.1 per cent, respectively.

The slowdown has already been picked up in the data released by the industry ministry last week on the performance of 172 industries during the first quarter.

The 172 industries under study carry a weightage of 88 per cent in the overall index of industrial production (IIP).

The growth rate recorded worked out to 9.8 per cent in the first quarter as compared with 15.5 per cent in the same period in 1995-96.