New Delhi, July 12: Industrial growth has plummeted to 5.5 per cent duringMay this year from 12.2 per cent in the previous month. The manufacturingsector which is the engine of economic growth and accounts for nearlyfour-fifth of the total weight of Index for Industrial Production (IIP) fellto 5.8 per cent in May 2000 compared to 8.9 per cent in the same month lastyear.According to the quick estimates of IIP released by the Central StatisticalOrganisation (CSO), the cumulative growth rate during the first two monthsof the current fiscal was marginally low at 5.5 per cent as against 5.6 percent registered during April-May 1999.Decline in industrial production could be due to change in the basket of IIPand accordingly growth rates in the case of certain industry segments haveundergone some changes, CSO said.The manufacturing sector grew by 5.9 per cent as against 7.1 per cent growthregistered in the same period last year.Industrial growth slumped despite better performance in the mining sectorwhich grew by 2.3 per cent in May 2000 compared to 0.3 per cent last year. Also the electricity sector registered a higher growth rate of 5.4 per centcompared to 3.3 per cent in same period. The cumulative growth in miningduring the first two months of current fiscal registered a growth rate of3.6 per cent compared to a negative growth rate 0.9 per cent in April-May1999.In the electricity sector, the cumulative growth declined to 4.5 per centthis year from 4.7 per cent in 1999.Consumer goods segment registered a growth rate of 10 percent in May 2000 asagainst 2.9 per cent posted in the same month last year.The basic goods sector grew by 5.9 per cent during May 2000 as against 2.1per cent last year. The cumulative growth in April-May stood at 5.8 per centcompared to 2.7 per cent in 1999.The capital goods segment witnessed a sharp decline and it registered anegative growth rate of 2.1 per cent in May 2000 compared to 16.4 per centlast year.The growth in the intermediate goods segment also remained subdued duringthe month at 3.7 per cent as against 15.8 per cent in May 1999. The cumulative growth in April-May 2000 was also low at 4.1 per cent asagainst 11.9 per cent last year.The consumer durables grew by 28.8 per cent in May this year compared to 12per cent registered last year and the cumulative growth in the first twomonths was 22.8 per cent this year and 14.1 per cent last year.The consumer non-durable goods segment also posted a higher growth rate of4.6 per cent in May 2000 as against 0.5 per cent in May 1999, CSO said.
