Manufacturing sector grows 12.7% in May

By agencies   |   Wednesday, 06 July 2005, 19:30 IST
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NEW DELHI: Increase in demand coupled with better availability of raw materials has led to buoyancy in the manufacturing sector which registered a growth of 12.7 percent during May this year, against 10.7 percent during the corresponding period last year. Senior industry ministry officials told Business Standard that present trends, based on preliminary data, indicated that the manufacturing sector which accounts for 80 per cent of the index of industrial production was showing signs of a healthy pick-up. ‘The growth of over 12 percent coming on the back of a 10 per cent growth in May last year indicates good buoyancy in the sector,’ an official said. Officials pointed out that several industrial sectors were showing good growth during May. Sectors like basic chemicals and chemical products registered a growth of 18.3 per cent while machinery and equipment registered a growth of 16.2 percent. Among the user-based industries the capital goods sector has shown the highest rate of growth of 20.7 percent. Transport equipment witnessed a growth of 15.7 percent while metal products except machinery grew at 13.3 percent.