Industrial growth slows to 0.6% in August
Industrial production growth slowed to 0.6 percent in August this year, mainly due to poor performance of manufacturing sector and capital goods segment.
Zee Media Bureau
New Delhi: Industrial production growth slowed to 0.6 percent in August this year, mainly due to poor performance of manufacturing sector and capital goods segment.
Industrial production had grown 2.6 percent in July, expanding for the first time in three months, on improved performances in the manufacturing and power sectors, raising hopes of a recovery and expectations the RBI will cut interest rates to boost consumer demand.
The manufacturing sector, which constitutes about 76 percent of industrial production, crawled up 0.1 percent from a year earlier.
Capital goods production, a barometer for investments in the economy, contracted by 2 percent in August from a year earlier.
Meanwhile, terming IMF's growth projection of 3.75 percent for India as pessimistic, Finance Minister P Chidambaram has said the country's economy is expected to grow by 5 to 5.5 percent in the current financial year on back of good monsoon, robust farm output and impact of reform measures undertaken by the government in past one year.