12 September 2012 Last updated at 03:18 ET

India's manufacturing flat in July

Indian manufacturing has been subdued for months

India's industrial output was flat in July, adding to fears the country's economic growth spurt is over.

The data, from the Central Statistics Office (CSO), showed output at factories, mines and utilities rose by 0.1%, a far better performance than the shrinkage of 1.8% in June.

The improvement came after a recovery in production of some consumer goods.

It was, however, below expectations of growth of 0.3%, meaning that it has grown just once in the past year.

A year ago, output grew at 3.7% in July.

The downturn has come against a backdrop of high interest rates to try to curb a 7% inflation rate and a lack of demand from crisis-hit Europe.

The latest figures on India's economy showed it grew by 5.5% in the three months to July, strong by European standards but a three-year low for India.

The government is hoping for growth of about 6.5% for the year to March 2013, a level seen as unattainable by many economists.