The Hindu Business Line : Industrial production index dips in Oct

A NEGATIVE 1.8 per cent growth in the mining sector coupled with a slower 9.6 per cent growth in the manufacturing pulled down the Index of Industrial Production (IIP) to 8.5 per cent in October 2005 compared to 10.6 per cent in the same month a year ago.

However, the electricity sector showed significant progress with 7.4 per cent growth in October (3.5 per cent). During the first seven months of this fiscal, the index rose by a slower 8.4 per cent compared to 8.7 per cent in April-October 2004-05, as per official data released here on Monday.

In April-October 2005-06, manufacturing witnessed higher growth at 9.6 per cent compared to 9.1 per cent during the corresponding period of 2004-05.

The mining sector posted only 0.7 per cent growth compared to 5.3 per cent while electricity also recorded lower growth at 5.2 per cent this fiscal compared to 7.1 per cent in April-October last year.

As per use-based classification, growth in basic goods stood at 6.3 per cent while capital goods witnessed 24.1 per cent growth and intermediate goods recorded 1.6 per cent growth.

The consumer durables and consumer non-durables sector have recorded growth of 13.6 per cent and 11.1 per cent, respectively, with the overall year-on-year growth in consumer goods being 11.8 per cent in October 2005.

For the first seven months of this fiscal, basic goods grew 6.3 per cent compared to 5.8 per cent in April-October 2004. Capital goods recorded a higher growth at 16.6 per cent against 13.7 per cent, while intermediate goods witnessed less growth at 3 per cent (7.8 per cent).

Consumer goods grew at 13.2 per cent so far this fiscal compared to 11 per cent a year ago with consumer durables witnessing 13.1 per cent growth and consumer non-durables registering 13.3 per cent growth.

As many as 13 of the 17 industry groups reported positive growth in October this year over the same month of last year.

Other manufacturing industries recorded the highest growth of 39.2 per cent, followed by 21.6 per cent in beverages, tobacoo and related products and 16 per cent in textile products as well as in base metals and alloys.

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