Not worried over the moderation of IIP, India Inc expects that the steps taken by the government to revive growth will yield results.
According to the government data, factory output measured in term of Index of Industrial Production moderated to 3.4 percent in June from 19 months high of 5 per cent recorded in the previous month mainly due to lower output of consumer goods.
On the other hand, retail inflation - based on Consumer Price Index - rose marginally to 7.96 per cent in July, from 7.46 percent in June mainly due to higher prices of food items like vegetables, fruits, milk.
As regards IIP, the data revealed that manufacturing, mining and power sectors grew by 1.8 percent, 4.3 percent and 15.3 percent respectively. Besides the output of capital goods recorded a growth of 23 percent.
Overall, 15 of the 22 industry groups in manufacturing showed positive growth in June.
Commenting on the data, Ficci President Sidharth Birla said: "Sectors like consumer goods remain a cause of concern. We are hopeful that the steps taken by the government so far and measures announced in the Budget will help in further revival of the sector."
Output of consumer goods contracted by 10 percent in June compared to the contraction of 1.5 percent a year ago. For the April-June quarter, the segment has logged a contraction of 3.6 percent, compared to a decline of 2.1 percent in the same period of 2013-14.
The consumer durables segment declined by 23.4 percent in June, as against a dip of 10.1 percent a year ago. For April-June, it declined by 9.6 percent as against a dip of 12.7 percent in the first quarter of last fiscal.
Similarly, the consumer non-durable goods output grew at a meagre rate of 0.1 percent in June compared to 6.2 percent in same month last year. During April-June, the segment grew at 0.7 percent compared to 7.1 percent in same period last fiscal.

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