New Delhi: Slowdown in the manufacturing sector pulled down the overall industrial growth rate to 7% in April, the first month of the current financial year.
The industrial production during April 2008 declined from 11.3% recorded in the corresponding month of the previous financial year, say the Index of Industrial Production (IIP) figures released on 12 June.
The decline has been mainly on account of poor showing by manufacturing and electricity sectors.
While the manufacturing sector growth rate slipped from 12.4% to 7.5% during the month, power generation recorded a sharper decline from 8.7% to 1.4%.
The mining sector, however, registered a robust growth in April, moving up to 8.6% from 2.6% in the corresponding period last year.
According to the official figures, the industrial growth rate for 2007-08 stands at 8.3%, down from 11.6% in the previous year.
As per the use-based classification, consumer goods segment witnessed a decline in growth to 8.9% against 14.7% the same month last year.
However, much to the respite of the white good industry, consumer durable segment registered a growth of 5.5% during the month versus 2.4% in the corresponding month the previous year.
At the same time, consumer non-durable segment growth reduced to 9.8% against 18.7% previous year.
Capital goods, the key sector for industrial growth, however, surged to 14.2% against 10.9% in April 2007. On the other hand, basic goods decelerated to 4.6% against 8.6% in the previous year.
During the month, as many 14 of 17 industries showed a positive growth in April from a year-ago period. Beverages, tobacco and related products galloped by 30.7% followed by basic chemicals and chemical products, which shot up by 15.4% and transport equipment and parts by 11.4%.
On the other hand, the industry group — food products, jute and other vegetable fibre textiles and textile products — have shown a negative growth of 6.3%, 9.9% and 2% respectively.