Sharp drop in India's industrial growth
Monday, 12 November 2007, 20:30 IST
Printer Print Email Email
New Delhi: India's industrial production in September rose 6.4 percent from a year earlier, significantly lower than annual growth of 10.7 percent in August, according to official data released Monday. The consumer durables sector was the hardest hit, showing a fall of 7.6 percent in output, according to quick estimates released by the Central Statistical Organisation of the ministry of statistics and programme implementation. The output in the overall consumer goods sector fell 0.6 percent. The country's manufacturing output rose 6.6 percent in September from the corresponding period last year, compared with revised annual growth of 10.5 percent in August. Experts attribute the slowdown in output to higher interest rates and a rising rupee impacting large parts of the economy. The Reserve Bank of India has raised rates five times between mid-2006 and March this year. Exporters have also been hit by a 12.5 percent rise in the rupee this year. The rupee touched its strongest level in nearly 10 years last week at 39.16 per dollar.
Source: IANS
siliconindia