TNI Bureau: India witnessed a sharp fall in industrial production growth, which stood only 0.1 per cent in April. The decline is a huge blow to the government, which is facing heats for gloomy economy and several scams.
Industrial production growth rate, which is measured by the Index of Industrial Production (IIP), declined as compared to 2011. Last year, it was 5.3 per cent in April.
It could be expected that the RBI will cut rates next week to combat the sluggish economy in the country.
According to the government data, the output rose just 0.1 per cent in April and fell in March from a year earlier by 3.5 per cent. The Reuters poll predicted that it could increase 1.7 per cent.
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The data clearly points that Indian industrial growth is extremely weak. The capital goods output declined by 16.3 per cent against a growth of 6.6 per cent in the same month last year.
Mining output fell by 3.1 per cent in April against growth of 1.6 per cent in the same month in 2011.
However, consumer goods production grew by 5.2 per cent in April, as compared to 3.2 per cent in the same month last year. The consumer durables also expanded by 5 per cent in April against 1.6 per cent in the same month last year.
Finance Minister Pranab Mukherjee expressed his disappointment over 0.1 per cent industrial growth rate in April. He assured that the government will take few measures to kick start the economy and encourage investment in infrastructure sector. He said that negative rate of investments is continuing, but soon it will be in order.