JOIN USIndustrial growth for the first four months stood at 4.6 per cent against 5.6 per cent a year ago, after expansion in factory production is revised to 8.2 per cent in June against 7.8 per cent estimated provisionally.
While mining grew by a whopping 9.9 per cent in July against a mere 2.8 per cent, manufacturing, which constitutes around 80 per cent in industrial production, expanded by 6.8 per cent, slightly lower than 6.9 per cent a year ago.
Electricity generation stood at 4.2 per cent in July against 4.5 per cent a year ago. However, there is no unanimity whether the high industrial growth would continue. While Finance Secretary Ashok Chawla thinks the revival in industry would continue, many economists do not share this view as the credit offtake is not picking up and a slackening farm production would indirectly impact industry as well.
Credit growth has witnessed a further 14.89 per cent drop for a fortnight ending August 14, 2009 against 15.79 per cent for the fortnight ending July 31, 2009, according to RBI.
Industrial growth in the month of July was quite wide ranging as just two industrial groups —cotton textiles and jute fibre — posted a negative growth. Consumer durable goods production, which for long registered a negative growth, expanded by a whopping 19.8 per cent in June even on high base of 13.9 per cent a year ago. Consumer non-durable goods production grew by five per cent against 3.4 per cent a year ago. For the first four months, this sector registered a negative growth of 2.6 per cent, showing dismal performance in earlier months.
However, capital goods grew by just two per cent against 17.9 per cent a year ago. Basic goods production was up 4.8 per cent in July against 5.3 per cent a year ago.
Press Trust of India