Manufacturing grows a slow 5.5% in Q4
India's factory output grew by 5.5% in the January-March period, rekindling the debate about an imminent industrial slowdown in the coming months. HT reports.business Updated: May 31, 2011 23:15 IST
India's factory output grew by 5.5% in the January-March period, rekindling the debate about an imminent industrial slowdown in the coming months.
While the GDP clocked a growth rate of 8.5% for 2010-11, the disaggregated figures reveal that the growth of the industrial sector has slowed down.
Poor industrial output has pulled down the overall GDP growth rate from the advance estimates of 8.6% to 8.5% in the revised data, the Centre said.
"The downward revision is mainly on account of lower performance in mining, quarrying, manufacturing and trade, hotels, transport, and communication and financing, insurance, real estate and business services than anticipated," a Central Statistical Organisation statement said.
"The persistent tightening of monetary policy is surely leaving an imprint on the performance of the industry," said Rajiv Kumar, secretary-general, FICCI.
Economists expect growth to moderate in 2011-12 owing to monetary tightening and the disappointment over the strength of the investment upturn.