Industrial Growth Slips To 1.1% In January

Industrial growth in January plunged to 1.1 per cent, against 12.9 per cent in January 1996 (base: 1980-81), led primarily by a drastic drop in the growth rate of the consumer durables and capital goods sectors.

Growth in the consumer durables sector was down sharply from 54.6 per cent in January 1996 to -10.6 per cent in January 1997, and the capital goods sector registered negative growth of 3.2 per cent against a growth rate of 19.5 per cent in January 1996.

The latest CSO data indicates that the sharp decline in industrial production is largely on account of a slowdown in the crucial manufacturing sector, which has a weight of 77 per cent in the index of industrial production. The sector grew by just 0.9 per cent in January 1997, against 15.4 in the same month last year.

 

The mining sector registered a negative rate of growth of 1.3 per cent, down from 4.9 per cent in January 1996.

Food products, jute, wood and wood products, chemicals and chemical products, leather and leather products and electrical machinery all showed negative growth in January 1997 over January 1996. The sectors which have done well include beverages, tobacco and tobacco products which grew by 40 per cent, basic metal and alloys industries (29 per cent) and cotton textiles (10 per cent).

Cumulative industrial production dropped from 11.7 per cent in April-January 1995-96 to 7.5 per cent for the corresponding period last year. Mining, manufacturing and electricity sectors declined during this period.

While growth in the mining sector fell from 7.8 to 1.4 per cent, the manufacturing sector showed a less dramatic decline, from 12.8 per cent in April-January 1995-96 to 9 per cent during the corresponding period last year.

All use-based categories, including basic goods, capital goods, intermediate goods, consumer goods, consumer durables and consumer non-durables registered a lower growth rate in April January 1996-97.