Industrial production growth rate slowed down sharply to 0.1 per cent in April due to contraction in capital goods and dip in manufacturing output, reflecting the sluggish state of the economy that may prompt RBI to cut lending rates.

Growth in factory output, as measured by the index of industrial production (IIP), was 5.3 per cent in April in 2011.

The manufacturing sector, which constitutes over 75 per cent of the index, grew barely 0.1 per cent, as against 5.7 per cent in April 2011, according to the official data released Tuesday.

The capital goods output declined by 16.3 per cent as against a growth of 6.6 per cent in April 2011.

Mining output contracted by 3.1 per cent in April 2012, as against growth of 1.6 per cent in April 2011.

The slowdown in industrial production is likely to put pressure on the reserve bank to cut lending rates at its mid-quarterly review on June 18.

However, consumer goods production showed a faster growth rate of 5.2 per cent in April 2012, compared to 3.2 per cent in April 2011.

The consumer durables segment also expanded by 5 per cent in April 2012, as against 1.6 per cent in April 2011.

Power generation witnessed a slower growth of 4.6 per cent during April 2012, compared to 6.5 per cent in April 2011.