Zee Media Bureau
New Delhi: Showing signs of sluggishness in the economy, growth rate of industrial production slowed to 0.5 percent in July, as against 3.4 percent in June.
The cumulative growth for the period April-July 2014-15 over the corresponding period of the previous year stood at 3.3 percent.
The indices of industrial production for the mining, manufacturing and electricity sectors for the month of July rose by 2.1 percent, 1 percent and 11.7 percent compared to the same month last year.
The cumulative growth in the three sectors during April-July 2014-15 over the corresponding period of 2013-14 has been 2.8 percent, 2.3 percent and 11.4 percent respectively.
The numbers come weeks after the economy posted its fastest growth in 2-1/2 years, helped by a revival in industrial activity, prompting Prime Minister Narendra Modi to paint a rosier outlook for coming quarters.
The optimism fanned by Modi`s rise to power has already brought inflows of nearly USD 14 billion of foreign funds into Indian equities this year as investors bet that his drive to cut red tape would revive stalled projects and underpin the economic recovery.
To sustain this euphoria, economists say, Modi must overhaul India`s strained public finances, stringent land acquisition laws, chaotic tax regime and rigid labour rules.
During his first 100 days in office, the new prime minister showed little appetite for such structural changes, and there is concern that sharply higher growth in the last quarter could obviate the urgency to press ahead with them.
With agency inputs
