Large Scale Manufacturing

Large scale manufacturing (LSM) continued to decline, as it registered a negative
growth of 6.2 percent in Q1-FY09 as against a reasonable growth of 7.3 percent in
Q1-FY08. This decline in LSM production is broad-based. Seven sub-sectors
(having 72.4 percent weight) out of fifteen registered decline, while three (having
15.3 percent weight) registered a growth of less than one percent.
This disappointing outcome is a result of a number of factors including: severe
energy shortages, deterioration in domestic law & order situation, impact of pass
through of international oil prices, sharp depreciation in rupee - US dollar parity
and most importantly, weak external demand on the back of global recession and
slowdown in domestic demand