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The index of industrial production (IIP) grew less than expected, at 2% in April from a year earlier, government data showed on Wednesday.
Manufacturing, which constitutes about 76% of industrial production, grew 2.8% from a year earlier.
Capital goods production, a barometer for investments in the economy, grew an annual 1% from a year earlier, whereas intermediate goods grew 2.4% and consumer goods rose by 2.8% .
In March, the IIP recovered to 2.5% growth after a sluggish growth of 0.6% in February. The IIP growth stood at a decade low of 1% in 2012-13.
However, CPI inflation still remained elevated despite moderation at 9.31% in May from 9.39% in April.
This makes it even difficult for the Reserve Bank of India, which is set to review its monetary policy on June 17, to cut the policy rates.
Asia’s third-largest economy expanded at the weakest pace in a decade in the year ended March.
From Our Archives| How industry performed during the last 6 months
March 2013 | March industrial output expands by 2.5%
India's industrial production growth rose at a pace of 2.5% in March, after its moderate growth of 0.6% in February 2013. The Index of Industrial production had registered a growth rate of 2.4% in January 2013. Click here for more
February 2013 | Industrial output slips to 0.6% in February
Industrial production barely grew and was at 0.6% in February from a year earlier, government data showed on Friday.
Revised data for January showed production at factories, mines and utilities remained unchanged at 2.4%. In the April-February period, industrial production expanded an annual 0.9%. Click here for more
January 2013 | After contracting for two months, IIP rises 2.4% in January
Backed by the manufacturing and electricity segments, industrial production increased 2.4 per cent in January, against 0.49 per cent contraction in December 2012. However, economists were cautious in terming the data a sign of a recovery, as lead indicators suggested poor performances by the automobile and electricity segments in February. Click here for more
December 2012 | IIP shrinks again, by 2% in December
After contracting for the first time in 15 years in October, industrial production again crashed by two per cent in December against a growth rate of as much as 8 per cent a year ago despite a stimulus package announced by the government to boost sagging demand. Click here for more
November 2012 | IIP falls to -0.1%
The industrial output, as measured by the Index of Industrial Production (IIP) dipped from a robust 8.3% in October. The decline may prompt the Reserve Bank to consider rate cut in its quarterly review on January 29 to boost growth. Click here for more
October 2012| IIP soars to 8.2%, beats estimates
Industrial production growth rate bounced back to a 16-month high of 8.2% in October on good performance of the manufacturing, power sector and higher output of capital as well as consumer goods, indicating sudden recovery in the economy. Click here for more
