The Hindu Business Line : Industrial growth at 9.8 per cent on manufacturing boost

Buoyed by a strong 10.9 per cent growth in the manufacturing sector, the country's overall industrial output grew 9.8 per cent in April-May 2006, up from 9.5 per cent in the corresponding period last year.

The mining and electricity sectors, however, continued to be an area of worry for policy makers, with both recording sharp decline in growth for the period under review.

While capital goods showed strong growth performance at 21.1 per cent in April-May 2006 (13.9 per cent in April-May 2005), the consumer goods growth declined to 9 per cent (15.9 per cent). The decline in consumer goods growth levels could be attributed to the sharp fall in growth rates of consumer non-durables.

The latest data on industrial production, released by the Central Statistical Organisation (CSO) here on Wednesday, showed that manufacturing sector had registered a growth of 10.9 per cent during April-May 2006 compared to 10.3 per cent in the corresponding period last year.

Dip in mining, power

While the mining sector grew only 3.2 per cent in April-May 2006, lower than 4 per cent in April-May 2005, the electricity sector growth rate was down to 5.3 per cent against 6.7 per cent in the previous year.

However, figures for May 2006 alone show industrial production grew 10 per cent, lower than the 10.8 per cent growth level recorded in the corresponding month last year.

While manufacturing sector growth remained unchanged at 11.3 per cent in May 2006 (11.3 per cent in May 2005), both electricity and mining sector reported decline in growth rates for this month.

Electricity sector recorded a growth of 4.7 per cent (10.5 per cent) and the mining sector registered a growth of 3 per cent (5.2 per cent).

As per the use-based classification, the sectoral growth rates in May 2006 over May 2005 are 9 per cent in basic goods, 20.5 per cent in capital goods and 8.6 per cent in intermediate goods. The consumer durables and consumer non-durables have recorded growth of 18.3 per cent and 5.9 per cent, respectively, with the overall growth in consumer goods being 9.1 per cent. Consumer goods had recorded 18.4 per cent growth in May 2005.