Industry slows down to 8.5% in October

A slowdown in manufacturing coupled with a plunge in the mining sector pulled down industrial growth to 8.5 per cent during October 2005 com...

int(2)

A slowdown in manufacturing coupled with a plunge in the mining sector pulled down industrial growth to 8.5 per cent during October 2005 compared to a strong 10.6 per cent in the same month a year ago.

The manufacturing sector grew by a slower 9.6 per cent during the month as against 11.9 per cent in October 2004. Growth in the mining sector fell to a negative 1.8 per cent during October this fiscal compared to a respectable 6.2 per cent in october 2004-05. The index of industrial production (IIP) would have been even lower but for the improved performance of the electricity sector, which posted a 7.4 per cent growth in October 2005 as against 3.5 per cent in the same month last fiscal.

During the first seven months of this fiscal, the index rose by a slower 8.4 per cent compared to 8.7 per cent during April-October 2004-05, as per official data released today.

Story continues below this ad

In April-October 2005-06, manufacturing witnessed higher growth at 9.6 per cent compared to 9.1 per cent during the corresponding period of 2004-05. The mining sector posted only 0.7 per cent growth so far this fiscal compared to 5.3 per cent in the same period last fiscal while electricity also recorded a lower growth at 5.2 per cent this fiscal compared to 7.1 per cent in April-october 2004-05.

As per use-based classification, growth in basic goods stood at 6.3 per cent in Oct. 2005 over the same month of 2004, while capital goods witnessed a 24.1 per cent growth and intermediate goods recorded a 1.6 per cent growth. Consumer durables and non-durables have recorded growth of 13.6 per cent and 11.1 per cent respectively, with the overall year-on-year growth in goods at 11.8 per cent in Oct. 2005.