Index of Industrial Production (IIP) growth rate slides in September 10

The Index of Industrial Production (IIP) slides to 4.4 percent in September 2010. The IIP figures would be disappointing and also let the tank the Indian stock market.

Last year the IIP of India was at 8.2 per cent. The mining, electricity and manufacturing sectors of Indian economy have registered very slow growth rate comparing to other sectors.

The Reserve Bank of India's move to tame the inflation through the interest rate could be said as major reason. There would be further fluctuations in the interest rate by the RBI.

The decline in the mining, electricity, and manufacturing is a big concern for the Indian economy and government. This slowdown in the industrial out put would certainly affect the economy growth rate.