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India's
industrial output growth slows to 6.4 per cent in September
12 November 2007
Mumbai:
Industrial production in the country grew at 6.4 per cent in September 2007 from
a year earlier, its slowest in nearly a year, as higher interest rates and a stronger
rupee impacted business sentiment.At
6.4 per cent industrial production was sharply lower than the growth rate of 10.7
per cent in August and an expected 9.9 per cent growth in September. Industrial
output in the country grew at an annual 9.2 per cent in the first six months of
fiscal 2007-08, compared with 11.1 per cent in the same period last year.
September's
growth is the lowest since October last year when output
expanded an annual 4.5 per cent.
Manufacturing
output rose 6.6 per cent in September compared with revised annual growth of 10.5
per cent in August. Manufacturing
production posted the weakest gain in almost a year, as output of consumer goods
such as refrigerators and washing machines fell 0.6 per cent in September. Mining
output grew 6 per cent while electricity output rose 4.5 per cent. Automobile
production, including buses, cars and motorcycles, fell 6.9 per cent in September
from a year earlier. The
saving grace is an 18.6 per cent increase in capital goods production in September,
which suggests infrastructure sector support to the nation's industrial output In
contrast, industrial output in China accelerated to 18.9 per cent in September,
about three times the pace in India, from 17.5 per cent in August.
Higher
interest rates have hurt domestic demand and exporters have also been hit by a
12.5 per cent rise in the rupee this year.  Some
banks have cut rates for consumer loans to push demand for homes, cars and televisions.
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