New Delhi, Sept 13 (KNN) India's industrial production grew 0.5 per cent in July - its slowest pace in four months - dragged down by contraction in consumer durables by 20.9 per cent during the month from a 9.6 per cent contraction a year ago.

Contraction in consumer durables reflects weak demand for goods which include items like washing machines, TV, ACs and refrigerators.

Manufacturing which constitutes over 75 per cent of the index, contracted 1 per cent in July, compared to 3 per cent growth in output a year ago, according to official data.

Capital goods output contracted by 3.8 per cent in July from 15.9 per cent in the same month of the previous year. Capital goods, is often seen as an indicator of investments in the economy.

Some of the other important items showing high negative growth are - Telephone Instruments including Mobile Phones and Accessories (-) 67.2 per cent, Sugar (-) 60.3 per cent, Gems and Jewellery (-) 32.2 per cent, Wood Furniture (-) 30.3 per cent and Cigarettes (-) 23.8 per cent.

India's GDP - the total value of goods and services produced in the country - grew at 5.7 per cent during April-June 2014, from 4.6 per cent in the previous quarter, showing some signs of recovery from the last two years when growth was below 5 per cent.

Reacting to the IIP data, industry body FICCI said, “It is worrying that deceleration in July is somewhat broad based extending to consumer durables and capital goods”. (KNN/SD)