MUMBAI (AFP) – India's industrial production slowed sharply to 1.8 percent year-on-year in December, data showed Friday, reflecting the impact of a string of aggressive interest rate hikes and weak global conditions.

The figures, which significantly undershot analysts' forecasts of a 3.4 percent rise in output, was also down from November's 5.9 percent increase.

But India's central bank was unlikely to start cutting interest rates immediately to boost growth as inflation remained high, economists said.

The industrial output ''number in itself is not enough to push the RBI (Reserve Bank of India) to cut rates just yet. In addition, underlying inflation pressures remain firm,'' said Leif Eskesen, economist at HSBC.

The central bank has hiked interest rates 13 times since March 2010 to battle inflation, but has kept them on hold since December amid signs that inflation had started to cool while the economy weakened