New Delhi: Industry output grew by 7 per
cent in July, the same as during the corresponding month last
year, indicating that decline in factory production has been
by and large arrested.
"The index of industrial production for the month of
July has shown a growth rate of 7 per cent and the core
sectors have also demonstrated an upward trend," Commerce and
Industry Minister Anand Sharma said while unveiling the
Foreign Trade Policy today.
The Index of Industrial Production (IIP) had recorded a
growth rate of 7.8 per cent a month ago in June. It had posted
a growth rate of 7.1 per cent a year ago in July 2008.
Attributing the 7 per cent industrial growth in July to
fiscal and monetary measures taken by the government and the
Reserve Bank, Sharma said, "these measures have had a salutary
effect on our economy and we have seen some signs of
recovery."
While the government had provided stimulus packages
amounting to 3.5 per cent of the Gross Domestic Product (GDP)
to promote industrial growth, the RBI reduced key policy
ratios and rates releasing liquidity in the system to help
economy battle the impact of the global financial crisis
following collapse of the America's iconic investment banker
Lehman Brothers.
The core sector data released by the government
yesterday, revealed that growth rate of six infrastructure
industries eased to 1.8 per cent in July with the petroleum
refinery sector showing poor performance during the month.
A 14.4 per cent contraction in petroleum refinery
products constricted expansion of the six key industries in
July, against 5.1 per cent a year ago.
The core sector, which comprises petroleum refinery,
crude oil, coal, electricity, cement and finished steel and
accounts for 26.68 per cent in the country's industrial
production, had grown by 6.8 per cent in June.
Crude oil, though at lower rates, dipped by 0.4 per cent
in July against (-)3 per cent a year ago. However, coal
expanded by 9.7 per cent against 5.5 per cent, electricity by
3.3 per cent compared to 4.5 per cent, cement by 10.6 per
cent against 5.5 per cent and finished steel by 1.2 per
cent as against 6 per cent.
However, thanks to better showing in the previous three
months, core industries improved performance by 4.1 per cent
for April-July period, against the corresponding months in the
last fiscal.
Bureau Report
First Published: Thursday, August 27, 2009, 18:37