New Delhi, March 19: The growth rate of six key infrastructure sectors fell sharply in January to 4.2 per cent compared with 8.3 per cent in the same month last year, raising concerns about economic growth amidst rising inflation.

During April-January 2007-08, the growth rate of these core industries declined to 5.5 per cent, against 8.9 per cent during the same period last fiscal, data released today said.

“What is a matter of concern is that the fall in the six core infrastructure sectors is not a good sign for the economy,” D. Joshi, chief economist at Crisil, said.

Ruling out the impact of the economic slump in the US on infrastructure, Joshi said, “the slowdown in these core sectors could result in infrastructural deficit in the country, which is not a good thing”.

The industrial growth rate unexpectedly slowed in January to 5.3 per cent compared with 11.6 per cent in the same month last year. Major segments such as manufacturing, electricity and mining disappointed.

The index of industrial production growth rate in January is the lowest since October 2006, when it stood at 4.51 per cent. Inflation, too, has risen to a nine-month high of 5.11 per cent, making it difficult for the Reserve Bank to reduce interest rates to boost consumer demand and spur growth.

“As inflation rises and growth softens, the Reserve Bank of India and the government face a complicated task ahead. We don’t expect any cut in interest rates in the bank’s April policy,” Sonal Varma, economist at Lehman Brothers, said.