Slow industry growth a concern: RBI

A day after the factory output growth for the month of September was announced at 4.4%, the Reserve Bank of India expressed its concerns over the weak numbers as Subir Gokarn, its deputy governor, termed it as disconcerting.

A day after the factory output growth for the month of September was announced at 4.4%, the Reserve Bank of India expressed its concerns over the weak numbers as Subir Gokarn, its deputy governor, termed it as disconcerting.

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"The IIP (index of industrial production) is suggesting somewhat of a deceleration, 5.5% in August and 4.4% in September. A lot of that deceleration is coming in from a sharp decline in capital goods, which, of course, must raise some concerns," said Gokarn while speaking at a function in Mumbai.

He also said that whether this deceleration reflects a slowdown in investment activities or weaker expectations of future growth, it is a matter of concern.