All three major sub-sectors of the index of industrial production (IIP) - manufacturing, mining and electricity - showed sharp decline in September compared to August figures. Manufacturing sector grew by only 2% as against 4.2% in August and electricity grew 2.6% compared to 6.8% while mining recorded a negative 4.9% growth compared to 0.6% in August.

On an annualised basis, over all IIP (base:1993-94=100) and its three sub-groups showed an even greater slump. The overall growth of 1.4% during September 1998 was far below 8.5% recorded last September. Similarly, manufacturing sector's growth last year was a robust 8.7% compared to just 2% this year and electricity grew by9.3% in September 1997 compared to 2.6% this year.

Growth in mining sector too was dismal as it slid to a negative 4.9% compared to 5.2% a year ago. Poor performance during September has further pulled down cumulative growth figures with the manufacturing sector growth declining to 3.4% from 6% a year ago and mining sector posting negative growth of 0.4% in the first half compared to 5% last year.

However, half-yearly growth of electricity showed a small improvement over last year at 7.7% compared to 7.2% during April-September 1997. Among sub-sectors of manufacturing industry, growth in consumer goods, accounting for more than one-fourth of the IIP weightage, slid into the negative in September at minus 4.6% and pulled down cumulative growth to 0.8% in the first half against 2.5% last year.

Both consumer durables and non-durables posted negative growth rates of 2.5 and 5.2% compared to 9.8 and 12.2% respectively posted last September. Cumulative growth rates fell to 0.4 and one% for the first halfagainst 6.3 and 1.5% respectively a year ago. Basic goods also had a negative growth of 1.4% in September resulting in half-yearly growth of 2.6%. The sector grew by 7.6% and 7% respectively in the month of September and in the first half.

There was some improvement in growth rates of capital goods and intermediate goods in September at 8.5 and 8.2 per respectively compared to 7.2 and 7.1%.