2 percent as against the earlier estimate of 7.8 percent,' the chamber said in a statement.

However, it also said that too much should not be read into the figures since a period is being entered, where the base effect would help India post good growth figures for the next three quarters.

'Although this is not a reflection of the best that the industry can post, but we believe that a definite turnaround has started and the next two quarters would see industry becoming more robust and even starting to look at capacity addition and investments,' the CII said in a statement.

'Currently, the investment demand in the economy is weak and if the industrial growth does indeed pick up as is being indicated, then there could be distinct rise in the non-food credit offtake,' the CII added.