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Industry grows at 10.8 %
By agencies
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Wednesday, 13 July 2005, 19:30 IST
NEW DELHI: In the manufacturing and electricity sectors, industrial growth touched 10.8 percent in May 2005 against 6.8 percent in May 2004. The growth recorded the highest monthly growth in nearly eight years.
Manufacturing growth was up 11.5 percent from 7.5 percent in the corresponding month last year, while electricity reported a 10.6 percent jump in production in May 2005 against a 3.1 percent growth in May 2004.
But the mining sector reported a dip in growth to 3.7 percent in May this year, compared with 5.3 percent in May 2004.
The buoyancy will continue for a few months, said DK Joshi, senior economist Consumption-led recovery translated into investment-led growth could be seen, he added.
Among the categories like capital goods, and machinery and equipment, have been performing well of late, even outstripping growth in the index of industrial production (IIP). But a slowdown has been witnessed in segments like commercial vehicles and some core sector industries.
According to figures released by the Central Statistical Organization, industrial growth in April-May this fiscal is at 9.6 percent, against 7.9 percent in the corresponding period last year,
The IIP growth for April has been revised upwards, from 8.4 percent to 8.8 percent. Fourteen of the 17 two-digit industry groups have shown positive growth during the month of May 2005 compared with the corresponding month of the previous year.
Textile products (including apparel) have shown the highest growth of 35.1 percent, followed by 15.9 percent in machinery and equipment other than transport equipment and 14.6 percent in basic chemicals and chemical products.
As per the use-based classification, the capital goods segment, an indicator of the investment levels in the economy, reported a fairly high growth of 19.2 percent in May 2005, against 13 percent in May 2004.
Consumer goods also performed well, growing 19 percent, compared with 4 percent in the corresponding month last year. Consumer durables grew at 19.5 percent and consumer non-durables at 18.7 percent in May 2005. The basic goods segment grew 8.1 percent, up from 3 percent in May 2004.