Industrial growth story gets better, 13.6% in April
ENS ECONOMIC BUREAU
Posted online: Wednesday, June 13, 2007 at 0000 hrsNew Delhi, June 12: Defying expectations that five increases in lending rates lower the past year would dampen output, industrial growth in April this year stood at a massive 13.6 per cent against 9.9 per cent in the same month last year.

Manufacturing sector led the surge — figures for which were released today in the index for industrial production (IIP) — expanding by 15.1 per cent in April against the 11 per cent growth in April 2006. Manufacturing, which makes up about 15 per cent of gross domestic product and nearly 80 per cent of industrial output, has the highest weight in the index.
The index also gave revised data for March, showing annual growth of 14.5 per cent instead of a provisional 12.9 per cent. While the mining sector recorded a flat 3.4 per cent growth, there was a slight improvement in the power generation sector, which recorded a 8.7 per cent growth this April against 5.9 per cent in April last year.
Industry chamber CII welcomed the upward trend but said the “decline in growth of consumer durables, basic goods and capital goods is a cause for concern”.
Assocham president Venugopal Dhoot said, “If interest rates are brought down considerably and infrastructural facilities put in place, domestic industry can do miracles for double digit growth.”
A further break-up shows that 16 out of the 17 industry groups expanded during this April. The industry group “wood and wood products; furniture and fixtures” showed the highest growth of 92.2 per cent, followed by 55 per cent surge in “food products” and 19.2 per cent in “machinery and equipment other than transport equipment”. Only the segment of “other manufacturing industries” showed a negative growth of 5.4 per cent.
Commenting on the industrial growth figures, finance minister P Chidambaram indicated that but for some sectors such as housing and real estate, the government had no intention of enforcing measures that could curb demand.
“The intention is not to constrain demand in every sector...the intention is to constrain demand in sectors in which you call overheating exists, for example real estate and housing,” he told reporters today.
If one goes by the use-based classification, figures show that there was a dip in the growth of basic goods (down from 9.3 per cent last April 2006 to 8.9 per cent this April); capital goods (down from 19.6 per cent to 17.7 per cent); and consumer durables (down from 7.4 per cent to 5.3 per cent).
But in the same category, there was a phenomenal increase in the growth of consumer non-durables — up from 9.4 per cent to 21.9 per cent. Consumer goods grew from 8.9 per cent to 17.7 per cent, and intermediate goods from 8.5 per cent to 12.6 per cent.

For years together, India had followed stunningly different paths to its Economic development as compared to other Asian countries like Japan, South Korea, or China. While these countries placed their bets on manufacturing and exports, India focused on its domestic economy and grew more slowly with an emphasis on services.

But now it is changing and changing very fast…

The above window clearly construes the pace at which today India, as a Globally Emerging Industrial Mammoth is moving towards the Giant Leap.

The intention behind highlighting the India’s Economical growth is to make all of us aware of the fact that this positive economic growth is however juxtaposed by environmental and social costs, which are attributed to ineffective effluent treatment, treatments processes, and regulatory oversight.

The focus of the topic is more toward the conservation of our environment .The same environment where we dwell and is constantly detoriating due the large influx of highly contaminating pollutants discharged from the Industries in spite of their constant efforts in controlling the same. The need for better effluent water treatment is growing day by day as is the toxicity and the nature of contaminants in the effluent stream. It is demanding more intensive and comprehensive planning.

Common effluent treatment plants (CETPs) are considered one of the most feasible solutions for abatement of industrial wastewater pollution. The basic fundamental principle of these plants is to segregate and pretreat the incoming effluent to bring it in congruence with the effluents coming in from other industries. There are industries that generate low quantity but highly toxic wastes, on the other hand some industries generates tons and tons of wastewater but comparatively low to medium toxic. These streams when blended together can only bring down the effluent load but cannot reduce the pollution content by any amount.

The demand for advanced water treatment Chemical / Mechanical techniques is growing day by day. Every single component of the Effluent Treatment plants now needs to be scrutinized in the milieu of numerous factors and not as a single entity. Research need more focus on the Cost effectiveness and step-ups in the output water quality. The level or the intensity of the treatment to which wastewater can be subjected should be based on the purpose for which it is recycled. It is said that in some cities in Germany, every drop of water is recycled eight times. The water recycled can be used for gardening or other application depending on the water quality. However it should be treated to the threshold levels in order to free it from harmful containments that pollute the receiving environment.

India’s contribution in controlling the levels of contamination and wastewater generation is very significant although improvements in the water treatment techniques are still required. We are among the very few countries in the world that contains provision for environment protection; this is being explicitly stated in the 76th amendment stipulating the conservation, protection, and improvement of the environment. We should think seriously and join hands together on protecting the environment and natural resources on which our lives are very much dependant.

Sanket S. Kulkarni