The Hindu Business Line : Industrial growth at 7.9 pc in August

LED by strong recovery by the manufacturing sector, industrial output registered 7.9 per cent growth in August 2004, as against growth of 5.7 per cent in the same month last year.

The cumulative growth of industrial output during the first five months of 2004-05 also stood at 7.9 per cent, against a growth of 5.9 per cent recorded during the corresponding period last fiscal, according to quick estimates of the Index of Industrial Production (IIP) figures released today by the Central Statistical Organisation (CSO).

The manufacturing sector, which accounts for over one-third weightage in the IIP, grew by 8.2 per cent compared to 6.7 per cent last year. The cumulative growth in April-August also stood at 8.2 per cent over 6.5 per cent recorded last fiscal.

August witnessed a strong performance across the board. The power sector bounced back with growth of 7.1 per cent against nominal growth of 1.2 per cent earlier.

The mining sector also recorded 4.7 per cent growth, against 1.3 per cent growth during last year.

During the first five months, the power sector witnessed 7.7 per cent growth (2.5 per cent), while mining grew by 5.2 per cent (4.1 per cent).

In August, production of basic goods grew by 5.2 per cent (3.1 per cent). For April-August, the figure was 4.9 per cent (four per cent).

Capital goods output grew by 15.4 per cent in August against 9.5 per cent earlier. On a cumulative basis, growth during the first five months stood at 14.3 per cent (9.3 per cent).

The growth of production of intermediate goods during the month slowed down marginally to 5.5 per cent (5.9 per cent), while cumulative growth doubled to 8.8 per cent (4.4 per cent).

Consumer goods grew by 10.7 per cent (7.3 per cent), while cumulatively, the growth slowed to 8.4 per cent (8.5 per cent).

Production of consumer durables surged by 13.9 per cent during the month against 7.6 per cent earlier. Cumulative growth stood at 13 per cent (5.6 per cent).

Consumer non-durables also registered 9.6 per cent growth in August (7.3 per cent).

However, on cumulative basis, the sector grew by 6.8 per cent compared to 9.4 per cent earlier.