India's industrial output growth trickled to 6.2 per cent in October, the lowest this fiscal, on account of a slowdown in manufacturing production.
The Index of Industrial Production, which measures the growth in output of manufacturing, power generation and mining, rose 6.2 per cent during the month as against 9.8 per cent in the same month last fiscal.
Manufacturing increased at six per cent in October from 10.9 per cent a year ago, as growth in production of consumer goods, durables and non-durables almost came to a standstill, as per the data released by Central Statistical Organisation.
Electricity generation grew 9.7 per cent during the month under review compared to 7.7 per cent, while mining output increased four per cent as against a negative growth of 0.1 per cent in the same month of 2005-06.
The lower growth in industrial production could ease pressure on Reserve Bank of India to raise interest rates.
During April-October, overall industrial production has risen 10.3 per cent from 8.6 per cent in the corresponding period of last fiscal. Manufacturing rose 11.2 per cent, power generation 7.1 per cent and mining 3.4 per cent as against 9.7 per cent, 5.2 per cent and 0.9 per cent respectively.
Production in consumer goods sector increased by just 0.5 per cent from 14.6 per cent a year ago. Consumer durables rose 2.4 per cent against 16.4 per cent, while non-durables output actually declined 0.4 per cent compared to a growth of 14 per cent during October 2005-06.
Production of capital goods also increased at a much lower rate of 8.2 per cent in October this fiscal from 24.3 per cent a year, while basic goods sector registered a growth of 9.9 per cent from 7.0 per cent a year ago.