"Sharp downward revision in forecasts of electricity, textiles, cement, commercial vehicles, machinery, fertilisers, crude oil, petroleum products, man-made fibres and PVC pipes and tubes have pulled down our forecast for overall industrial production growth from 8.3 per cent to 6.3 per cent," CMIE said in its monthly report here.
Poor performance of the IIP in the first half and the new stress seen in select industries led to a substantial downward revision in our forecast for FY'09, the Centre for Monitoring Indian Economy (CMIE) said.
Some industries, such as textiles face poor export demand and others like commercial vehicles face demand constraints arising out of high interest rates. Some industries also face adverse conditions because of fresh supply constraints, it said.
Petroleum refining faces supply constraints as scheduled commissioning of new capacities are postponed.
"We have scaled down our forecast in the fact of a stark contradiction. While the IIP grew by a meagre 4.9 per cent in the first half of FY'09, the inflation-adjusted sales of manufacturing companies recorded an excellent growth in output of 12 per cent," CMIE said.