Industrial growth retracted sharply to 11.5% in May’10: Below than expectations, but no worries

Industrial growth for May 2010 came in at 11.5% from 16.5% in April 2010 (revised down from 17.6% estimated earlier), primarily on account of a deceleration in manufacturing and mining sectors. However, IIP numbers in May 2010 are much better than 2.1% a year ago. While the numbers are below expectations, it should not be mistaken as any serious problem in Indian economy. Investment driving segments i.e. capital goods and consumer goods posted good numbers though the same were lower than last month. Intermediate goods, in spite of high base,

managed to record double digit growth.