Industry grows 8% in FY-06, dips from 8.4%

By agencies   |   Monday, 15 May 2006, 07:00 Hrs
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NEW DELHI: Industrial growth slowed down to 8 percent during 2005-06, as against 8.4 percent in the previous year, and analysts warned of further moderation during the current fiscal on account of high global oil prices, rising interest rates and increase in metal prices.

The lower growth was due to a sharp drop in mining sector output and moderate fall in the growth of manufacturing and electricity sector during 2005-06.

According to latest data, during March 2006 the index of industrial production grew 7.7 percent, compared with 9.8 percent in March 2005. The manufacturing sector, which has 80 percent weight on the index, grew 8.9 percent last year, compared with 10.9 percent in 2004-05.

Prime Minister, Manmohan Singh had recently said that the government was targeting 12 percent annual growth in manufacturing to push economic growth to 10 percent. Companies have higher input costs but low pricing power.

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