In what could be construed as beginning of a slow down, the year 2008 has began on an ominous note with the industrial growth the industrial growth rate during first ten months of current fiscal — April 2007 to January 2008 — declined to 8.7 per cent from a high of 11.2 per cent during corresponding period of previous fiscal.

Industrial growth, as measured by Index of Industrial Production (IIP), dipped to an abysmal low of 5.3 per cent in the month of January this year as compared to 11.6 per cent in the same month last year as growth in all major sectors comprising manufacturing, electricity and mining declined, latest IIP data released here show.

Poor show

Analysis of data shows that overall industrial growth has declined  mainly on account of poor showing by all sectors of the industry, including manufacturing, electricity and mining, coupled with negative growth in consumer durables output.

The economy is projected to grow by 8.7 per cent in the current fiscal, as per advance estimates of Central Statistical Organisation (CSO). The growth in the manufacturing sector output, which has almost 80 per cent weight in IIP, declined to 5.9 per cent in January, against 12.3 per cent in the same month last year.  During April-January 2007-08, manufacturing output growth declined to 9.2 per cent from 12.1 per cent during corresponding period of 2006-07.

In January, all crucial sectors like manufacturing, mining and electricity have posted decline in production growth.

The cumulative growth rate of all three sectors—manufacturing, electricity generation and mining—during April-January 2008 declined in overall production. During April-January 2008, manufacturing output growth declined to 9.2 per cent from 12.1 per cent during corresponding period of 2006-07.  Consumer durables production registered negative growth both in January and first 10 months of current fiscal.  The production of consumer durables declined to 3.1 per cent in January this year as against 5.3 per cent in same month last year.