Zee Media Bureau
New Delhi: The Index of Industrial Production (IIP) has been estimated at 3.7 percent June 2014, government data showed on Tuesday.
The government has also revised the May IIP numbers to 5 percent from the erstwhile estimate of 4.7 percent.
The factory output number, which remained positive territory for second month in a row mainly due to a better show by manufacturing, mining and power sectors and higher output of capital goods, last month has also come down at 3.4 percent this month.
Driven by improved performance of the manufacturing sector, industrial production growth soared to 19-month high of 4.7 percent in May raising hopes of a sustained recovery.
Mining sector has registered 4.3 percent growth as compared to 2.7 percent last month. The electricity sector registered 15.7 percent growth as compared to 3.3 last month.
Manufacturing sector grows at 1.8 percent as compared to 4.8 last month while consumer sector growth is at minus 10 percent as compared to 3.7 percent last month.
The data may disappoint Prime Minister Narendra Modi who won the strongest electoral mandate in 30 years in May on a promise to revive growth and control inflation.
Weak industrial production has been one of the main factors behind India`s ailing growth. A fall in output during the fiscal year that ended in March resulted in the second successive year gross domestic product growth was less than 5 percent.
Annual economic growth is forecast to accelerate to about 5.5 percent in the fiscal year to March 2015 from 4.7 percent last year. Given the country`s young population far faster growth is needed to provide jobs for new entrants to the labour market.
