Industrial production, which grew by 5.4 per cent in April-June this year, declined sharply to a cumulative 4.0 per cent during the first four months of the current fiscal, as per latest estimates of Index of Industrial Production (IIP).

Data for July released by Central Statistical Organisation (CSO) today revealed that both manufacturing and electricity sectors fared poorly while mining sector improved on its already poor performance.

Manufacturing sector, which accounts for three-fourth the total IIP weightage, grew by 3.7 per cent during April-July as compared to a 5.6 per cent growth achieved a year ago. In the first quarter, the sector grew by 5.5 per cent.

Electricity generation growth fell to 9 per cent in the first four months as compared to 10.2 per cent achieved during April-June of this fiscal. However, the sector had recorded alower 6.2 per cent cumulative growth a year ago.

Mining sector reversed the negative 0.3 per cent growth in the first quarter by posting a 2.9 per cent growth in July, thereby taking the cumulative growth in April-July to 0.5 per cent.

As per the IIP (base: 1993-94=100), manufacturing sector grew by 1.2 per cent in July against 8.5 per cent a year ago, while electricity had a 5.1 per cent growth rate compared to 8.9 per cent last year.

During June, the manufacturing sector had grown by 5 per cent compared to 6 per cent growth in the same month of the previous year. The slump in manufacturing sector in July could be traced to the negative growth in consumer goods as well as the lower rate of growth in basic and intermediate goods.

The all-important capital goods sector grew by 6.8 per cent in July to post a cumulative growth of 10.5 per cent. The consumer goods sector recorded a negative 0.5 per cent growth in July mainly on account of a 4.7 per cent fall in consumer durables segment, popularly knownas the white goods sector.

Consumer non-durables grew by a marginal 0.7 per cent during the month under review to post a cumulative growth of 2.5 per cent in April-July as against a negative 1.5 per cent growth achieved in the same period a year ago. The negative growth in consumer goods has reduced the cumulative growth in this segment so far this year to 2.1 per cent. This is, however, higher than the 0.1 per cent growth achieved in April-July last year.

In April-July the consumer durables segment registered a 0.8 per cent growth compared to 6.2 per cent recorded during the same period last year. Basic goods, which accounts for one-third the total IIP use-based classification and measures growth in infrastructure sectors like steel and cement, grew by only 1.0 per cent in July.

This brought down the cumulative growth in the sector to 2.6 per cent in April-July from 7.7 per cent achieved a year ago. Growth in intermediate goods sector stood at 3 per cent in July compared to 10.7 per cent a year ago,the IIP data revealed.

The cumulative growth in this sector fell to 5.3 per cent during the first four months of the current financial year as against 8.4 per cent achieved a year ago.