Centre for Monitoring Indian Economy (CMIE) has revised its forecast for industrial production growth in 2008-09 from 6.3 per cent to 4.5 per cent indicating a downward trend."While lower inflationary expectations and a possible consequent fall in interest rates were expected to boost the industrial growth in the second half of FY 09, the global financial crisis cast their shadow on these expectations," CMIE said in its monthly report in Mumbai.The jolt of October 2008 pulled down the cumulative growth in the IIP during April-October 2008 to 4.1 per cent.The manufacturing units cut down on production because of the sharp slump in commodity prices, insufficient working capital finance, slowing export demand and the general uncertaintyy and skepticism in the business community.Industrial output, measured in terms of the Index of Industrial Production declined by 0.4 per cent in October 2008. This is for the first time in the last fourteen-and-a-half years the industrial growth fell into the negative territory, CMIE said.The manufacturing sector output dipped by 1.2 per cent as the food products, textiles, chemicals, non-mettalic mineral products, transport equipment, wood and leather product sectors suffered fall in production.The industrial production growth had slowed down in the first half of FY 09 to 4.9 per cent from 10 per cent in the same period a year ago. This slowdown came mainly on account of the spiralling inflation and the high interest rate regime followed to counter it.
