Industrial Growth Dips To 9.98% In April-June

This is indicated by the figures for industrial performance released by the industry ministry yesterday. These figures are based 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 downtrend is evident in all the sectors but is most pronounced in infrastructure which carries a weightage of 28 per cent in the IIP.

While overall industrial production was down by 5.5 per cent during the periods under comparison, it was lower by 4.9 per cent in manufacturing (11.5 per cent in April-June 1996 as against 16.4 per cent for the same period in 1995-96); 8.2 per cent in mining (6.5 per cent in 1996-97 as against 14.7 per cent in April-June 1995-96) and 7.3 per cent in electricity (4.2 per cent in 1996-97 as against 11.5 per cent in April June 1995-96).

 

Manufacturing carries a weightage of 77.10 per cent while mining and electricity carry a weightage of 11.46 per cent and 11.42 per cent in the index, respectively.

The user-based classification of industries, however, failed to reflect a slowdown where the consumers durables sector (weigtage 2.5 per cent) improved upon its the last year's performance by 3.7 per cent. The growth in the sector stood at 21.1 per cent this year as against 17.4 per cent during April-June last year. Economists believe that signs of recessionary trends would first find reflection in consumers durables sector.

The industry ministry was, however, guarded in its statement, which said, ``While there does not seem to be any recessionary trend, the broad sectors which have recorded deceleration in growth rates include power, steel, fertilisers, crude petroleum, sugar, jute manufactures fero-alloys etc.''

The performance of crude production has particularly been a cause for major concern with the overall production down by 9.1 per cent during April-June 1996 as against a 28.2 per cent growth registered during the same period last year.

Fertiliser production has also registered a negative growth of 16.1 per cent during the first quarter as against an 8.2-per cent increase in production in April-June 1995-96.

The production position in the steel sector is comparatively better with a 5.5-per cent growth registered in the first quarter this year.

This growth is, however, still lower than the 8.3-per cent growth registered during the same period last year.

Among the non-durable commodities, sugar production suffered the most with the sector registering a 64.2-per cent growth in the current year as against a 216 per cent growth in the corresponding period last year.