INDIA BUSINESS WORLD - JUNE 2006
THE MONTH THAT WAS...

IIP CLOCKS 9.5% GROWTH

  THE index of industrial production (IIP) clocked a growth of 9.5% in April 2006 against 8.1% in the same month of the last fiscal on the back of a robust growth in manufacturing. Over two-thirds weight in the index is accounted for by manufacturing, that grew 10.4% compared to 9.2% last year, according to official data released here.

The mining sector lagged behind with a growth of only 4.3%, but it was more than the 0.9% growth registered during 2005-06. The electricity sector grew 5.6%, the statement said. The corresponding growth in mining and electricity respectively was 2.8% and 3.1% in April last year.

The fiscal 2005-06 ended with an industrial growth of 8.1% compared to 8.4% in 2004-05, according to official data released by the Central Statistical Organisation.

With the capital goods sector recording a growth of 24.9% and intermediate goods clocking a 5.3% growth, manufacturing will continue to grow at a double-digit pace. During April 2005, capital goods grew 14.6% and intermediate goods recorded a growth of 2.5%. As per use-based classification, the basic goods sector grew 9.1% in April compared to 6.2% in April 2005. However, there was a steep fall in the overall growth of consumer goods in April at 8.7% compared to 13.5% in the same month last year, as is typical in the beginning of the year. While the growth of consumer durables sector fell to 10.6% in April from 18.7% in the same month last year, the consumer non-durables sector grew 8% against 11.9% in the same month of 2005.

In terms of industries, as many as 13 of the 17 industry groups have shown positive growth during April 2006 compared to the corresponding month of the previous year.
Among the industry groups, the other manufacturing industries has shown the highest growth of 36%, followed by 20.7% in basic metal and alloy industries and 16.3% in transport equipment and parts. However, leather and leather and fur products have shown a negative growth of 28.3%, followed by 16.1% in wood & wood products, furniture and fixtures.