Industrial growth moderates, but demand is still robust
The country’s industrial output grew by 13.5 per cent, lower than the previous months’ growth rates, but high enough to push the full-year growth levels to double-digit levels.business Updated: May 12, 2010 23:22 IST
The country’s industrial output grew by 13.5 per cent, lower than the previous months’ growth rates, but high enough to push the full-year growth levels to double-digit levels.
Manufacturing, which accounts for 80 per cent of overall industrial output, has grown at double digits during the last eight months.
Investment has moderated a bit with capital goods output growing at a slower 27.4 per cent as compared to the sizzling over 40 per cent in the previous three months. Analysts, however, said there were no reasons to fret of the moderation as rising production of commercial vehicles show that outlook for the capital and intermediate goods sectors remains positive in the coming months.
Inflation remains a major worry for the government.
“I am concerned about the prevailing high inflation in the economy. Inflation erodes real income. It hurts the marginalised, the poor segment of our society the most,” said Finance Minister Pranab Mukherjee at the Confederation of Indian Industry (CII) function here.