Industrial growth slips further in first 7 months

The two sub-groups also returned to positive growth in october, largely on account of increased festival demand due to diwali and dusshera. Durables grew by 7.6 per cent in october compared to a negative 2.5 per cent growth in september, while non-durables grew by 1.1 per cent from a 5.2 per centnegative growth a month ago.

Growth during april-october for these two sub-sectors of consumer goods stood at 2.1 and 1.5 per cent respectively, which was way below the rates of 6.1 and 2.3 per cent posted by these sectors a year ago.

basic goods, which depicts growth in key infrastrcture sectors like steel and cement, dipped further and posted a negative 3.2 per cent growth compared to minus 1.4 per cent recorded last month.

Overall growth in this sector, which accounts for over 35 per cent of iip weightage, slid sharply to 1.6 per cent in april-october compared to a robust 7 per cent recorded a year ago. Half-yearly growth in this sector was at 1.6 per cent as per the data released by government on November 11.

Intermediate goods sector grew by 5.9 per cent in october as compared to 7.2 per cent a year ago. The sector had posted a sound 8.2 per cent growth in September this year. Cumulative growth too came down to 6 per cent during the seven-month period from 7.8 per cent posted a year ago, the datarevealed.

Industry-wise analysis showed that manufacturing sector’s growth was largely due to a huge improvement in metal products and parts, transport equipment and parts, paper and paper products and rubber, plastic, petroleum and coal products. Of 17 industry segments analysed, seven posted negative growth over the april-october period.