<div>JP Morgan cuts its India GDP growth projection for 2014-15 to 5.1 per cent from 5.3 per cent after weak factory output print.<br /><br />"IP (industrial production) debacle is the straw that breaks the camel's back," JP Morgan said in its Oct. 10 report.<br /><br />India's August industrial output rose just 0.4 per cent compared with 2.4 per cent estimated in a Reuters poll.<br /><br />India's industrial production growth has slowed down to a five-month low of 0.4 per cent in August mainly due to contraction in manufacturing output and lower offtake of consumer goods.<br /> <br />The crisis-laden power sector is not helping the industry much, especially the small and medium ones.<br /><br />The factory output, as measured by the Index of Industrial Production (IIP), grew at a meagre rate of 0.4 per cent in August, 2014. IIP for July was also revised downwards to 0.41 per cent from the provisional estimates of 0.5 per cent released last month, according to the data released by the Central Statistics Office today.<br /><br />During the April-August period of 2014-15, IIP grew at 2.8 per cent, as against flat production in same period in the previous fiscal.<br /><br />The Reserve Bank of India projects GDP to grow at around 5.5 per cent in the current fiscal year ending March 2015.<br /><br />A slower growth and a fall in oil and commodity prices increase the chance for the RBI to attain its challenging 6 per cent consumer price inflation target by January 2016, JP Morgan said.<br /> </div><div>(Agencies)</div>
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