New Delhi: Industrial growth slipped to 7.6% in December from 13.4% in the corresponding month of 2006 on account of widespread deceleration in manufacturing, mining and electricity, among other sectors.
Consumer goods sector, in addition to other segments of the industry like basic goods and capital goods, also witnessed a slowdown in growth during the month, showed the quick estimates of the Index of Industrial Production (IIP) released on Tuesday.
The slippage in the rise in industrial output in December can be attributed mainly to the manufacturing sector growth rate, which decelerated to 8.4% from 14.5% in the corresponding period of last financial year.
Mining and electricity sectors also performed poorly during the month, recording growth rates of 3% and 3.8% respectively as compared to 6.1% and 9.1% in December 2006.
The cumulative industrial growth rate (April-December 2007) also slipped to 9% from 11.2% a year ago, suggesting that industrial growth rate during the financial year is unlikely to cross the double digit mark.
The nine-month growth rate for manufacturing sector declined to 9.6% from 12.2% in the previous fiscal. Similarly, the growth rates for mining and electricity sectors worked out to be 4.9% and 6.6% respectively, compared to 4.4% and 7.5% during the corresponding period of 2006-07.
The industrial growth rate for November 2007 has been revised downwards to 5.1% from 5.3% reported earlier.
The use-based classification of IIP also shows widespread deceleration in growth.
The index for the consumer goods sector fell to 8.7% during December 2007 as compared to 10.7% a year ago.
The growth rate of the consumer non-durables sector declined to 10.6% from 13.5%, while consumer durables segment showed a marginal improvement to 2.2% from 1.8% in December 2006.
The slippage was quite marked in case of basic goods with growth rate sharply declining to 3.1% in December as compared to a high of 12.4% a year ago.
The output of capital goods, however, showed a healthy growth of 16.6% during the month, though down from a high of 26.2% recorded in the year-ago period.
The index of intermediate goods declined to 7.2% in December from 12.7% in the corresponding month in the previous financial year.
The cumulative growth figures (April-December 2007) suggest that output of consumer durables sector declined by 1.3% as compared to a growth of 11.2% during the corresponding period in the previous fiscal.
The only sector that showed improvement during the nine-month period was the capital goods sector, which recorded a higher growth rate of 20.2% as compared to 18.6% during April-December 2006.
In terms of two-digit NIC classification of the industry, 13 out of 17 industry groups showed positive performance during December with ‘Wood and Wood Products, Furniture and Fixtures´ recording the highest growth rate of 31.3%.
The industry segment ‘Metals Products and Parts, except machinery and equipment´ turned out to be the worst performer reporting a decline of 23.6%.