New Delhi: Registering the worst slump in more than six years for industrial production in India, signs of economic slowdown became more pronounced after factory output declined by 1.1 per cent in August, 2019. Measured by the Index of Industrial Production (IIP), the decline comes compared with an expansion of 4.3 per cent in the previous month of July.
According to data released by Ministry of Statistics & Programme Implementation, it was the worst performance since a 4.4 per cent contraction in November 2012. The IIP data showed an expansion by 4.8 per cent in August 2018.
A press release on Friday by the statistics ministry said, “Fifteen out of 23 industry groups in the manufacturing sector have shown negative growth during the month of August 2019 as compared to the corresponding month of the previous year.” The factory output growth declined in August on account of poor show by capital goods and consumer durable sectors.
The manufacturing sector, which contributes over 77 per cent to the IIP, showed a decline of 1.2 per cent during August 2019 as against a growth of 5.2 per cent in the same month of last year. Electricity generation declined 0.9 per cent as against an expansion of 7.6 per cent in the year-ago period.