New Delhi: Commerce and Industry Minister Kamal Nath said on 13 September a slowdown in industrial growth in July was not a matter of concern and the government was optimistic of 12% manufacturing growth in 2007/08.
Industrial output in July rose 7.1% from a year earlier, weighed down by softer manufacturing and consumer demand, data showed on Wednesday.
That was well below a forecast of 9.6% and June’s downwardly revised growth of 9.0%.
“Slowdown in industrial growth in July is not that much a matter of concern. Contraction of credit led to steep decline in consumer durables demand,” Nath told reporters on the sidelines of trade conference.
“I am optimistic that the target of 12% manufacturing growth will be achieved.”
Annual industrial growth in July was the lowest since October, when it slumped to 4.4%, and it was the first time since March and April 2006 that output grew less than 10% in consecutive months.