You are here: Home » PTI Stories » National » News
Business Standard

Industrial growth dips to 0.1 pc; may prompt RBI to cut rates

Press Trust of India  |  New Delhi 

As many as 10 of the 22 segments, including capital goods and mining, posted negative growth as the country grapples with global slowdown and subdued domestic demand. The IIP had grown by 5.3 per cent in April 2011.

However, offering some consolation, the data for the month under review was positive, as against 3.2 per cent drop logged in March.

"I am disappointed. Industry has not yet picked up.

Negative sentiments are there. We have to take steps to give positive signals," Finance Minister Pranab Mukherjee told reporters here.

The capital goods output declined by a whopping 16.3 per cent in April as against a growth of 6.6 per cent in the same month last year, clearly showing that entrepreneurs are losing appetite for new investments.

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.

The slowdown in industrial production will surely weigh on the Reserve Bank to cut lending rates at its mid-quarterly review on June 18.

The IIP data is yet another bad for the economy. Yesterday, global agency S&P put India on notice for a possible downgrade of its sovereign credit rating below the investment grade.

However, the stock market ignored both the S&P warning and dismal industrial performance amidst expectation of a rate cut by the Reserve Bank.

The BSE 30-scrip index, Sensex, was trading higher post the IIP data release. MORE

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, June 12 2012. 15:35 IST
RECOMMENDED FOR YOU