New Delhi: Industry performed badly during the last month of 2007-08, with growth decelerating to 3% from 14.8% in the year-ago period, a development that could be a major cause for concern for the government that is now focussing on fighting high inflation.
Consequently, growth in industrial production during the year fell to 8.1% from 11.6% in 2006-07, mainly due to poor showing of the manufacturing sector that accounts for over two-third of the Index for Industrial Production (IIP).
Manufacturing sector managed a poor 2.9% growth as compared to a high of 16% in March 2007, followed by a 3.7% growth in electricity.
The slowdown in the industry could have a marginal effect on the overall growth of the economy, which is projected to grow by 8.7%. This coupled with a 7.61% inflation in the early part of current fiscal could impact the demand, analysts say.