Industrial production growth rate slowed down sharply to 0.1 per cent in April due to contraction in capital goods and dip in manufacturing output, reflecting the sluggish state of the economy that may prompt RBI to cut lending rates.
Growth in factory output, as measured by the Index of Industrial Production (IIP), was 5.3 per cent in April last year.
The manufacturing sector, which constitutes over 75 per cent of the index, grew barely 0.1 per cent, as against 5.7 per cent in April 2011, according to the official data released on Tuesday.
The capital goods output declined by 16.3 per cent as against a growth of 6.6 per cent in the same month last year.
Mining output contracted by 3.1 per cent in April, as against growth of 1.6 per cent in the same month a year ago.
The slowdown in industrial production is likely to put pressure on the Reserve Bank to cut lending rates at its mid-quarterly review on June 18.
However, consumer goods production showed a faster growth rate of 5.2 per cent in April, compared to 3.2 per cent in the same month last year.
The consumer durables segment also expanded by 5 per cent in April, as against 1.6 per cent in the same month last year.
Power generation witnessed a slower growth of 4.6 per cent during April, compared to 6.5 per cent in the same month a year ago. In all, 12 of the 22 industry groups in the manufacturing sector have shown positive growth during April as compared to the same month a year ago.
Keywords: IIP report, Indian economy
Well, I can predict the future, actually I can show it. Simple look at USA, buy foreign manufactured goods make laws that hurts themselves. But there is a little difference, in USA, they develop the technology and get it manufactured abroad, in India we only Buy from Abroad (read Abroad as China). So Future will be even worse, coupled with bad infrastructure, Corrupt leaders crazy neighbors and over population. Its a recipe for disaster.
USA is smart, they'll fix it, but what about India ?
India's growth is stipulated by Indian CIA activists. So continues foreign investment only will help industrial growth.Here 0.1% growth means 0.1% foreign investment in this fiscal year !
The condition is disheartening if not not apocalyptic, but nevertheless if truth is to be told the it is not surprising. It is just in continuum of our economic scenario. The central Government is trying to get things in line but then the Jayas, Mayas, and Mamatas, are not very keen to let policy changes and reforms see the light of day, the opposition .. is far from being responsible, and opposing every possible thing that comes into the parliament. The government is responsible and accountable to this policy and reform paralysis but so is the opposition as a enemy within (yes they are free to bake their political bread but isn't the country bigger than that???as we are facing a crisis on our door steps).
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