The poor performance shown by manufacturing sector caused a marginal rise of 2.3 per cent in the industrial output against rise of 5.5 per cent during the same month in 2008.

The Index of Industrial Production (IIP) figures, recently released by the government, maintain that industrial output grew just 2.3 per cent during financial year 2008-09 against a high of 8.5 per cent in the same period last year.

Growth of manufacturing sector, which accounts 80 per cent in IIP, declined 3.3 per cent during March as compared to growth rate of 5.7 per cent for the month last year.

Mining sector grew just 0.4 per cent while power generation segment has done well, registering growth rate of 6.3 per cent during the reporting month.

Axis Bank economist, Saugata Bhattacharya, said, “The numbers were not a big surprise given the declines in exports and subdued industrial activity. Though it is a disappointment but is not a big cause of concern.”