Tuesday, May 13, 2008

Industry Performed Badly

Industry performed badly during the last month of 2007-08, with growth decelerating to 3 per cent from 14.8 per cent in the year-ago period, a development that could be a major cause for concern for the government that is now focusing on fighting high inflation.

Consequently, growth in industrial production during the year fell to 8.1 per cent from 11.6 per cent in 2006-07, mainly due to poor showing of the manufacturing sector that accounts for over two-third of the Index for Industrial Production (IIP).

Manufacturing sector managed a poor 2.9 per cent growth as compared to a high of 16 per cent in March 2007, followed by a 3.7 per cent growth in electricity. The slowdown in the industry could have a marginal effect on the overall growth of the economy, which is projected to grow by 8.7 per cent.

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