Industrial Production Grows By 8% In 99-2000

Driven by a resurgent manufacturing sector, industrial production grew by 8 per cent in 1999-2000 against 3.9 per cent previous year.

The index of industrial production (IIP) grew by 8.6 per cent in March 2000 against 4.4 per cent in March 1999, according to quick estimates of the index released yesterday by the Central Statistical Organisation (CSO).

A 9 per cent growth in the manufacturing sector in the April-March 1999-2000 period was responsible for the upturn in industrial production. The manufacturing sector accounts for nearly four-fifth of the total weight of the IIP.

Electricity recorded a 6.6 per cent increase over the year, while the mining sector recorded a mere 0.6 per cent growth.

 

As per the use-based classification of the index, the intermediate goods sector recorded a 15 per cent increase over the year, while the consumer durables sector grew by 12.2 per cent. Capital goods, however, grew by 4.8 per cent and consumer goods by 5.7 per cent.

In March this year, the overall index went up by 8.6 per cent mainly because of a 9.6 per cent increase in the index for manufacturing. The electricity sector posted a 5.6 per cent increase, while the index for mining grew at 2.2 per cent, which was significantly higher than the negative growth of 4.9 per cent in March 1999.

Twelve out of the 17 two-digit industry groups have shown positive growth during the month of March 2000 as compared to the corresponding month of the previous year. Basic chemicals and chemical products (except petroleum and coal) grew at 32 per cent, followed by metal products and parts which grew by 15 per cent.

Sectoral Growth Rates

All in % 1998-99 1999-2000

Mining -1.7 0.6

Manufacturing 1.3 9.0

Electricity 6.5 6.6

General 3.9 8.0