Indian industrial production grows 1.7 pct in December last year

India's industrial production growth rate slowed to 1.7 percent in December last year mainly due to a contraction in the mining and quarrying sector, said official statistics Thursday.

The growth in factory output was higher as compared to December 2013 which had an expansion of 0.1 percent.

Meanwhile the January retail inflation moved up to 5.11 percent month-on-month, said Central Statistical Office.

Reserve Bank of India Governor Raghuram Rajan said last week that attaining the projected inflation target of six percent by January 2016 is at risk due to expected "food price shocks as the full effects of the monsoon's passage unfold and from geo- political developments that could materialize rapidly".

In December 2014, the manufacturing sector grew by 2.1 percent from a negative growth of 1.1 percent in the corresponding month of 2013. Electricity sector rose 4.8 percent from a 7.5 percent increase in December 2013.

However, the mining sector declined 3.2 percent from an increase of 2.6 percent in the corresponding month of 2013.

Manufacturing of basic, capital and intermediate goods showed growth during the month under review. Production of basic goods grew by 2.4 percent, while capital goods was up 4.1 percent and intermediate goods rose by 0.1 percent. Endi