The Hindu Business Line : Industrial growth dips in Aug on slowdown in mining sector

A SHARP slowdown in the mining sector pushed down industrial growth to 7.4 per cent during August 2005, as against an 8.6 per cent growth in the same month last year.

The mining sector registered a negative 1.3 per cent growth during the month, compared to 4.4 per cent in August last fiscal. The manufacturing sector growth also slowed down to 8.2 per cent from 9.1 per cent a year ago, according to the Index of Industrial Production released by the Government on Monday. Bucking the trend, the electricity sector, however, grew 7.8 per cent during the month compared to a 7.4 per cent growth registered in August last fiscal.

The industry grew 6.7 per cent in July 2005 after posting strong growth of 10.8 and 11.7 per cent in May and June respectively.

On a cumulative basis, the Index of Industrial Production for the first five months this fiscal grew by a higher 8.8 per cent compared to 8.0 per cent in April-August 2004. During April-August this year, manufacturing sector grew by 9.8 per cent as compared to 8.4 per cent during the same period in 2004-05. The growth in the electricity sector was slower at 5.9 per cent in April-August this year against 7.7 per cent in the year-ago period. The growth in the mining sector also dipped to 2.0 per cent during April-August 2005.

As many as 13 of the 17 industry groups monitored under the IIP showed growth during August.

The `other manufacturing industries' recorded the highest growth of 24.6 per cent, followed by 21.1 per cent in `basic metal and alloy industries' and 14.7 per cent in `textiles'. As per use-based classification, except basic goods growth in all the other five segments — capital goods, intermediate goods, consumer goods, consumer durables and consumer non-durables — slowed down during August this fiscal.

The basic goods sector grew by 8.4 per cent in August, as against 5.2 per cent a year ago. The sector grew 7.0 per cent in April-August this year compared to 5.0 per cent in the same period in 2004-05. The capital goods sector recorded 8.9 per cent growth compared to 13.5 per cent a year ago. In the first five months this fiscal, the sector registered a growth of 11.8 per cent, as against 13.0 per cent a year-ago.

In the case of intermediate goods, growth slipped to 2.5 per cent in August, against 4.9 per cent in August last year. During April-August this year, the sector grew 3.2 per cent as compared to 8.6 per cent a year ago. Growth in consumer goods stood at 10.6 per cent in August as against 14.4 per cent in August 2004. During April-August 2005-06, growth in consumer goods jumped to 15.1 per cent from 9.3 per cent in the year-ago period.

The consumer durables and non-durables sector grew by 13.1 per cent and 9.7 per cent in August 2005 as against 20.1 per cent and 12.4 per cent respectively in August 2004. During the first five months this fiscal, the sectors grew by 13.2 and 15.8 per cent as compared to 15.4 per cent and 7.3 per cent respectively in April-August 2004-05.

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