IMPRESSIVE PERFORMANCE OF CHEMICAL INDUSTRY

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The Chemical Industry has recorded an impressive growth during the first month of the current financial year. The overall index of industrial growth, comprising mining, manufacturing and electricity, has registered a growth rate of 2.9% in April 2002 against 2.6% in April 2001. However, there has been a marginal decline in the rate of growth of manufacturing sector from 2.7% in April 2001 to 2.5% in April 2002.

In contrast, the Basic Chemicals and Chemical Products (accounting for 14% of the total weight in the Production Index) have registered an impressive growth of 6.9%. This is higher than the growth rate of 5% achieved in April 2001. It is also higher than the rate of growth of 4.3% achieved in the previous month i.e. March 2002 and the average rate of growth of 4.6% achieved during 2001-2002.

The chemical industry appears to have rebounded to its traditional high growth rate performance. Proactive policy support coupled with a conscious effort to achieve competitiveness is largely responsible for this extraordinary result.