The Hindu : Business : Industrial output spurts in May

Online edition of India's National Newspaper
Wednesday, Jul 13, 2005

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Business

Industrial output spurts in May

Special Correspondent

NEW DELHI: Spurred by excellent showing by sectors such as electricity and manufacturing, especially the consumer goods segment, the growth rate of industrial production in May touched the double-digit mark at 10.8 per cent as compared to a 6.8 per cent increase in May 2004.

According to the quick estimates of the index of industrial production (IIP) released by the Central Statistical Organisation (CSO) here on Tuesday, the 10.8 per cent overall growth was largely on account of a 11.5 per cent spurt by the manufacturing sector and a 10.6 per cent growth witnessed by the electricity sector. But for the low 3.7 per cent growth by the mining sector, the growth during May 2005 would have been still higher.

Accordingly, the cumulative growth rate for April-May 2005-06 was placed higher at 9.6 per cent on the back of a 7.9 per cent growth witnessed in the same two months of 2004-05. Simultaneously, the CSO has revised downwards the growth rate for April 2005 from 8.8 per cent to 8.4 per cent. The Government expects a GDP (gross domestic product) growth rate of 7 per cent during the current fiscal and the industry's performance in May is expected to go a long way in achieving the target, analysts said.

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