NEW DELHI, Aug 11: India's industrial production grew by a robust 9.6 per cent in June, according to official data released on Friday, but analysts said massive flooding could affect output in coming months.

Industrial production in Asia's fourth largest economy was driven by manufacturing, which expanded by 10.5 per cent in June from the same month a year earlier. Manufacturing accounts for three-quarters of industrial production.

Consumer durables production grew by 19.5 per cent.

“I see these numbers as positive. We are seeing increased supply and efficiencies coming through,” said R. Balakrishnan, director at investment advisory firm Parallex Consulting Services.

But economists warned that widespread flooding in western and southern India as a result of the annual monsoon rains could hit future output.

The floodwaters have begun to recede in many areas but hundreds of people have died, crops have been damaged and businesses have been affected.

“The flooding could have caused some serious damage to output, some exports could get hit,” said Balakrishnan.

Separately, India's inflation rate fell to 4.61 per cent from 4.67 per cent a week earlier, according to India's closely watched wholesale price index. This compares with 4.16 per cent a year ago.

The week-on-week fall came after the central Reserve Bank of India hiked its trend-setting reverse repo rate by a quarter point late last month to 6 per cent, the highest level in four years, in a bid to restrain inflation.

The rise was the second in a month-and-a-half and marked an escalation in the bank's battle against rising prices in India which logged 9.3 per cent growth in the first quarter.

Economists are forecasting growth of 7.5 to 8 per cent for the financial year to March 2007 after the economy expanded by 8.4 per cent last year.—AFP