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New Delhi , Sept. 12

INDUSTRY continues to be in a healthy revival mode, with the official Index of Industrial Production (IIP) recording a year-on-year growth of 5.6 per cent during July, over and above the 7.1 per cent level for the same month last year.

While the index for manufacturing (which has a 79.36 per cent weight in the general IIP) has gone up by 6.8 per cent (against 6.7 per cent in July 2002), the corresponding growth rates for mining (10.47 per cent weight) and electricity (10.17 per cent weight) worked out to 2.6 per cent (12.1 per cent) and minus 1.9 per cent (6.1 per cent), respectively.

On a cumulative April-July basis, the growth rates this year have been higher for the general index (5.6 per cent versus 5 per cent) as well as those for manufacturing (6 per cent versus 4.8 per cent) and mining (4.6 per cent versus 3.2 per cent). Only the electricity sector has suffered a deceleration, with the growth during April-July 2003, at 2.6 per cent, being lower than the 4.3 per cent figure for April-July 2002.

The use-based classification of the IIP provides a better picture of where the overall growth impulse is coming from. The index for capital goods — which is a reliable proxy for the extent investment activity taking place — in July 2003 has gone up by 9 per cent over and above the 11.8 per cent growth for July 2002, with the corresponding cumulative April-July growth rates amounting to 7.7 per cent and 6.8 per cent, respectively.

During July 2003, the index for basic goods rose by 4.1 per cent (against 7.5 per cent in July 2002), with the corresponding growth rates being 5.4 per cent (3.4 per cent) for intermediate goods, 6.2 per cent (minus 11.9 per cent) for consumer durables and 6.3 per cent (18.2 per cent) for consumer non-durables.

For the April-July 2003 period, cumulative growth rates amounted to 4.6 per cent (6 per cent) for basic goods, 3.1 per cent (1.1 per cent) for intermediate goods, 3.8 per cent (minus 4.5 per cent) for consumer durables and 10 per cent (11.9 per cent) for consumer non-durables.

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