Industrial output growth in March fell to 2.1% compared to previous month's 5% expansion and a contraction of 0.5% in the same month a year earlier. For 2014-15, industrial output clocked 2.8% growth compared to a decline of 0.1% in 2013-14, highlighting the stress that the sector is still facing.
Economist said they expect the Reserve Bank of India to cut rates when it reviews monetary policy next month.The central bank, which has cut rates twice out of cycle, paused in April as it preferred to wait for more data. “... sluggish pace of domestic demand and weak export demand have weighed on industrial production. Even so, recent months' figures suggest that both consumer and investment related sectors are grinding up, albeit only gradually . Therefore strengthening the case for a rate cut in June by the RBI,“ rating agen cy Crisil said in a report.
The factory data showed the consumer segment remains sluggish. India Inc stepped up call for cutting rates to boost growth.
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