COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Industrial production in 1998-99 falls by 40 per cent

Gurdip Singh in New Delhi

Industrial production, which registered a growth rate of 3.8 per cent during April-March, 1998-99, indicates a sharp decline compared to the corresponding months in 1997-98.

Industrial growth fell by 40 per cent in 1998-99, the growth rate being 6.6 per cent in April-March 1997-98. This is reflective of recessionary conditions prevailing in the economy, with mining and quarrying showing a steep fall.

According to latest data released by the finance ministry on various economic parameters, growth rate of the manufacturing sector fell to 4.1 per cent. It was 6.7 per cent in the corresponding period in 1997-98.

Production in basic goods increased by 1.6 per cent (against an increase of 6.5 per cent), capital goods increased by 10.2 per cent (against 5.3 per cent), intermediary goods registered an increase of 6.0 per cent (against 8.1 per cent), consumer goods increased by 2.1 per cent (against 5.7 per cent), consumer durables increased by 3.5 per cent (against 7.8 per cent).

Consumer durables increased by 1.8 per cent in April-March, 1998-99, against an increase of 5.2 per cent in the corresponding period the previous year. Food grain stocks stood at 21.66 million tonnes on April 1, 1999.

Core infrastructure sectors achieved an average growth rate of 2.5 per cent in April-March, 1998-99, compared with 5.4 per cent in the corresponding period the previous year.

A silver lining was the low prevailing inflation rate which was 3.7 per cent in terms of the Wholesale Price Index as on May 8, 1999, compared to 6.6 per cent a year back.

The rupee appreciated against the deutsche mark and the French franc, was stable against the pound sterling and depreciated against the dollar and yen in April 1999.

Exports increased by 3.7 per cent in dollar terms in April-March, 1998-99, compared with a decline of two per cent in the corresponding period the previous year while imports rose by 7.9 per cent.

Foreign exchange reserves (excluding gold and statutory drawing rights or SDRs) stood at $ 29.61 billion at the end of April 1999.

Money supply growth was 1.8 per cent during March 31, 1999, to April 23, 1999, whereas annual growth rate as on April 23, 1999, was 17.8 per cent.

UNI

Business news