Industrial growth slows down to 5% in Dec
A slowdown in manufacturing and power sectors coupled with a plunge in mining pulled down industrial growth to 5.0% in Dec 2005.india Updated: Feb 10, 2006 15:05 IST
A slowdown in manufacturing and power sectors coupled with a plunge in mining pulled down industrial growth to 5.0 per cent in December 2005 compared to a strong 8.9 per cent in the same month a year ago.
The manufacturing sector grew by only 5.9 per cent during the month as against 9.8 per cent in December 2004. Growth in the mining sector fell down to a negative 1.8 per cent during the month compared to 4.8 per cent in December 2004-05.
The Index of Industrial Production (IIP) was also lower on account of decline in electricity sector, which logged a growth of a mere 2.9 per cent during December 2005 compared to 4.5 per cent a year ago.
During the first nine months of this fiscal, the Index rose by a slower 7.8 per cent compared to 8.67 per cent during April-December 2004-05, as per official data released today.
In April-December 2005-06, manufacturing witnessed a slight fall to 8.9 per cent compared to 9.2 per cent during the corresponding period of 2004-05.
Mining sector posted only 0.4 per cent growth so far this fiscal compared to 5.1 per cent in the same period last fiscal while electricity also recorded lower growth at 4.8 per cent this fiscal compared to 6.4 per cent in April-December 2004.
As per use-based classification, growth in basic goods stood at 5.0 per cent in December 2005 over the same month of 2004, while capital goods witnessed 14.6 per cent growth and intermediate goods recorded a negative 0.4 per cent growth.
The consumer durables and consumer non-durables sectors have recorded growth of 12.3 per cent and 4.8 per cent respectively, with the overall year-on-year growth in consumer goods being 6.5 per cent in December 2005
For the first nine months this fiscal, basic goods grew at 6.0 per cent, the same as in April-December 2004. Capital goods recorded a higher growth at 15.7 per cent against 13.8 per cent during the period, while intermediate goods witnessed less growth at 2.2 per cent compared to 6.9 per cent in April-December 2004-05.
Consumer goods grew at 12.2 per cent so far this fiscal compared to 11.4 per cent a year ago with consumer durables witnessing 13.6 per cent growth and consumer non-durables registering 11.7 per cent growth during the period.
As many as 12 of the 17 industry groups reported positive growth in December this fiscal over the same month of last financial year.
'Other manufacturing industries' recorded the highest growth of 28.7 per cent, followed by 16.2 per cent in 'non-metallic mineral products' and 12.1 per cent in 'transport equipment' during December 2005 over December 2004.
On the other hand, 'paper, paper products and printing' group registered a negative growth of 25.8 per cent, followed by a decline of 16.5 per cent in 'leather and leather and fur products' and 5.7 per cent in 'wood and wood product; furniture and fixtures' during the month under review.