India's industrial growth declines to 7.1 pc

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Indian industry
New Delhi, Aug 12: Government data, which was released on Tuesday, Aug 10, showed that India's industrial growth had reduced to 7.1 percent from 8.3 percent in last year 2009.

Growth in manufacturing, which helps to measure factory output, slipped from 8 percent to 7.3 percent.

However, Electricity generation expanded by 3.5 percent from 8 percent in Jun, 2009.

Mining expanded the fastest at 9.5 percent.

Consumer durables was the only industry to show a somewhat good growth. It expanded by 27.4 percent against 16.2 a year ago.

As many as 13 out of 17 industries posted a positive growth.

However, despite a single digit growth in the month, factory output expanded by 11.6 percent in the first quarter from 3.9 percent a year ago.

Industrial growth figures for May, 2010 was revised downwards to 11.35 percent from 11.50 percent estimated earlier.

According the experts, the decline in industrial expansion will further increase RBI's dilemma on rate hikes to check inflation.

OneIndia News

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