The Hindu Business Line : Negative growth in electricity, mining pulls down IIP in July

NEGATIVE growth in the electricity and mining sectors in July this year lowered the overall growth in industrial production to 6.7 per cent against 8.5 per cent in July 2004, according to an official release.

On a cumulative basis, however, the Index of Industrial Production (IIP) for the first four months of the current fiscal grew by 9.3 per cent compared to 7.9 per cent in April-July 2004.

The electricity sector registered negative growth 1.2 per cent in July this year against positive growth of 13.7 per cent recorded in July 2004. The mining sector also posted negative 0.4 per cent growth against 4.2 per cent earlier.

Growth rate in the manufacturing sector, which has the highest weight in the IIP basket, remained stagnant at 8.3 per cent against 8.4 per cent earlier.

The slowdown comes after strong double-digit growth in May and June when industrial production rose by 10.8 per cent and 11.7 per cent respectively.

However, 13 of the 17 industry groups monitored under the IIP showed positive growth in July this year.

For the first four months of the current fiscal, the manufacturing sector grew by 10.4 per cent (8.2 per cent), while growth in the electricity sector was slower at 5.3 per cent (7.9 per cent). The growth in the mining sector also dipped to 3.1 per cent from 5.3 per cent earlier. Beverages, tobacco and related products recorded the highest growth of 26.7 per cent, followed by 24 per cent in other manufacturing industries, and 21.4 per cent in textiles.

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