Finance Minister Pranab Mukherjee, in a press conference, said that April's Industrial production growth figures are disappointing. IIP rate slowed down sharply to 0.1 per cent in April due to contraction in capital goods and dip in manufacturing output, reflecting the sluggish state of the economy that may prompt RBI to cut lending rates. Growth in factory output, as measured by the Index of Industrial Production (IIP), was 5.3 per cent in April last year. The manufacturing sector, which constitutes over 75 per cent of the index, grew barely 0.1 per cent, as against 5.7 per cent in April 2011, according to the official data released today.

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