Finance Minister Pranab Mukherjee on Thursday said industrial growth of 7.1 per cent in June, lowest in the last 13 months, was below his expectations.
“I expected it to be a little better,” Mr. Mukherjee told reporters on June’s Index of Industrial Production (IIP), which fell to single digit for the first time in nine months.
Industrial growth slipped to over a year low in June due to slowdown in manufacturing output, as well as on account of a high base last year. Mining and electricity generation, too, posted lower numbers. Growth in manufacturing, which constitutes around 80 per cent weight in IIP, fell to 7.3 per cent in June as against 8 per cent a year back. Mining output expanded by 9.5 per cent as against 14.2 per cent, and electricity generation grew by merely 3.5 per cent, against 8 per cent.
Experts attributed the sluggish pace of growth to high base effect. The expansion in factory output was 8.3 per cent a year ago and it made even a large hike now seem modest.