Fall in industry output reinforces slowdown trend: RBI

A sharp contraction in India's industrial output in March reinforces the slowdown trend in the country, a deputy RBI said on Friday.

The moderating inflation was a result of the growth slowdown, Subir Gokarn said. India's industrial output unexpectedly contracted 3.5% in March from a year earlier, government data showed on Friday. Also read: March IIP data very disappointing, says C Rangarajan Annual economic growth probably dropped from a near 8.5% to sub-7% in the 2011/12 fiscal year, which many consider to be the new trend growth rate for Asia's third-largest economy. The RBI remains focussed on fighting inflation, but other pressures cannot be ignored in the present situation, Gokarn said. Also read: Don't expect economy to recover until H2FY13, says Pronab Sen