India's index for industrial production (IIP) for April grew by a meagre 0.1 per cent, as against 5.3 per cent in the same month last year indicating a dismal economic growth, government data released said.
The growth rate slowed down in April due to contraction in capital goods and dip in manufacturing output
The IIP numbers that are below expectations, fuel speculation of an interest rate cut by the Reserve Bank of India to spur growth when it meets for its monetary policy review on June 18.
Indicating sharp slowdown in the economy, output of the manufacturing sector, which constitutes over 75 per cent of the index, grew by 0.1 per cent in April, as against 5.7 per cent in April 2011, according to the official data released on Tuesday.
PERSPECTIVE: IIP contraction triggers expectations of rate cuts
The IIP declined by 3.5 per cent in March this year mainly on account of contraction in manufacturing and mining output.
The capital goods output declined by 16.3 per cent as against a growth of 6.6 per cent in the same month last year.
Mining output contracted by 3.1 per cent in April, as against growth of 1.6 per cent in the same month a year ago.
However, consumer goods production showed a faster growth rate of 5.2 per cent in April, compared to 3.2 per cent in the same month last year.
The consumer durables segment also expanded by 5 per cent in April, as against 1.6 per cent in the same month last year.
Power generation witnessed a slower growth of 4.6 per cent during April, compared to 6.5 per cent in the same month a year ago.
In all, 12 of the 22 industry groups in the manufacturing sector have shown positive growth during April as compared to the same month a year ago.
With PTI inputs