Indian industrial production falls to 6-year low at 3%

 

 

                    Annual industrial growth stood at 8.1% vs 11.6%.  March industrial growth stood at 3% vs 14.8%.  Manufacturing products declines

          but capital goods shows growth. March manufacturing growth stood at 2.9% vs 16%.  FY08 manufacturing goods stood at 8.6% vs 12.5%. 

 

                REASONS:

 

                   Increasement  in Interest Rate on loan.

                   Base effect

                   Pressure on margin due to rised cost

                   High prices of Raw Materials

 

                PROBLEMS:

 

                  Industrial growth, probably, will be nearly 23% during FY08 – 12.

                  Income of new business will be lower

                  Decline in the growth