The Hindu Business Line : Industry grows at 10.7% in August

Business Daily from THE HINDU group of publications Saturday, Oct 13, 2007 ePaper

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Home Page - Economy
Industry & Economy - Economy
Industry grows at 10.7% in August

Manufacturing, power, mining drive growth

Our Bureau

New Delhi, Oct. 12 Industrial production bounced back in August this year to notch a year-on-year growth of 10.7 per cent after dipping to 7.1 per cent in July 2007. The growth came about because of improvement in manufacturing along with increases in the performance of power and mining sectors.

In August 2006, the Index of Industrial Production (IIP) had gone up by 10.3 per cent over the corresponding period of the preceding year.

According to the data released by the Government on Friday, manufacturing sector recorded a double-digit growth rate of 10.4 per cent during August. However, it was down from 11.9 per cent a year ago. The mining sector growth improved significantly to 17.1 per cent compared to a decline of 1.7 per cent in the corresponding month last year.

Electricity generation in August grew by 9.2 per cent (4.1 per cent). The capital goods sector recorded a growth of 30 per cent (16.6 per cent).

The growth of the consumer durables sector, however, notched a negative 6.2 per cent as compared to a positive growth of 19 per cent in August 2006. The basic goods and intermediate goods recorded growth rates of 13.3 per cent and 12.3 per cent, respectively during August as against 4.8 per cent 8.7 per cent in the corresponding period last year.

Apr-Aug growth down

Despite the upturn in August 2007, cumulative industrial growth during the first five months (April to August) slipped to 9.8 per cent from 11 per cent recorded in the same period last year. The growth in the manufacturing sector during April to August period decelerated to 10.3 per cent from 12.2 per cent recorded in the same period last year.

Electricity generation increased 8.3 per cent as compared to 5.7 per cent and the mining sector grew 5.4 per cent during the five-month period this year as against 3 per cent last year.

As per the use-based classification of industrial products, the capital goods sector recorded a growth of 21.3 per cent during April-August (19.5 per cent).

The basic goods segment grew by 10 per cent during the period (8.3 per cent). The intermediate and consumer goods recorded growth rates of 9.3 per cent and 6.2 per cent respectively as against 10.4 per cent and 11.4 per cent recorded last year.

The consumer durables sector during the April to August period dipped by 2.3 per cent as compared to growth of 16.1 per cent during the corresponding period last fiscal.