Consequently, growth in industrial production during the year fell to 8.1 per cent from 11.6 per cent in 2006-07, mainly due to poor showing of the manufacturing sector that accounts for over two-third of the Index for Industrial Production (IIP).
The manufacturing sector managed a poor 2.9 per cent growth as compared to a high of 16 per cent in March 2007, followed by a 3.7 per cent growth in electricity.
The slowdown in the industry could have a marginal effect on the overall growth of the economy, which is projected to grow by 8.7 per cent. This coupled with a 7.61 per cent inflation in the early part of current fiscal could impact the demand, analysts say.
During March, mining sector growth rate decelerated to 3.8 per cent, down from 8 per cent in the corresponding month in the previous fiscal.
Similarly, electricity sector's output during the month slipped to 3.7 per cent as compared to 7.9 per cent in the corresponding month in 2006-07.
As per the use-based classification, consumer goods' output during March declined by 0.1 per cent compared to a robust growth of 15.8 per cent in the same period previous fiscal.
Within the consumer goods category, the consumer durables sector showed a decline of 2.1 per cent (as compared to 3.8 per cent in March 2007), while the output of the consumer non-durables category registered a small growth of 0.6 per cent, down from 20.2 per cent in March 2007.
The deceleration was also witnessed in other categories like capital goods (8.6 per cent as against 18.1 per cent in March 2007), basic goods (3.1 per cent as against 11.9 per cent) and intermediate goods (3.5 per cent as against 15.3 per cent).
The IIP figures for 2006-07 reveals that industrial production slipped to 8.1 per cent from 11.6 per cent in the previous fiscal, mainly on account deceleration witnessed in manufacturing and electricity sectors.
The growth rate of the mining sector, however, slipped only marginally to 5 per cent from 5.4 per cent in the previous fiscal.
The growth rates of the manufacturing and electricity sectors during 2006-07 decelerated to 8.6 per cent and 6.4 per cent from 12.5 per cent and 7.2 per cent respectively as compared to the previous fiscal.