New Delhi - India's industrial growth was 5.4 per cent in June, down from an annualized rate of 8.9 per cent in the same month in 2007, according to government data released Tuesday. According to India's Central Statistical Organization, the Index for Industrial Production (IIP) grew by a mere 5.2 per cent during April-June 2008 compared to 10.3 per cent for the corresponding period in 2007. India's financial year runs from April to March.
The government had earlier projected that annual growth would come down to about 8 per cent.
The downtrend is being ascribed to spiralling inflation and high global crude oil and commodity prices in the period under review.
India, until recently was considered one of Asia's fastest-growing economies with a growth rate of about 9 per cent for four years running.
"I do agree that the growth in the industrial sector is rather slow. We need to improve it to maintain the growth momentum of 8 per cent or above," India's Planning Commission chairman Montek Singh Ahluwalia was quoted as saying by IANS news agency.
"One month's industrial growth rate cannot and should not be taken as an indicator of the final growth rate in the current fiscal," he added.
