Industrial Output Shrinks by 1.1% On the Back of Poor Manufacturing Performance
The Wire Staff
Real journalism holds power accountable
Since 2015, The Wire has done just that.
But we can continue only with your support.
New Delhi: India's industrial output shrank by 1.1% in August due to a poor show in the manufacturing, power generation and mining sectors, official government data released on Friday showed.
The Index of Industrial Production (IIP) had expanded by 4.8% in August 2018.
The manufacturing sector, which contributes over 77% to the IIP, showed a decline of 1.2% in output during August 2019 as against a growth of 5.2% in the same month of last year.
| Month and Year | Growth (in %) |
| August 2018 | 4.3% |
| September 2018 | 4.5% |
| October 2018 | 8.1% |
| November 2018 | 0.5% |
| December 2018 | 2.4% |
| January 2019 | 1.7% |
| February 2019 | 0.1% |
| March 2019 | (-) 0.1% |
| April 2019 | 3.4% |
| May 2019 | 3.1% |
| June 2019 | 2.0% |
| July 2019 | 4.3% |
| August 2019 | (-) 1.1% |
Source: Statistics Ministry
Electricity generation declined by 0.9% as against an expansion of 7.6% in the year ago month while the growth in the mining sector was flat at 0.1%.
The overall IIP growth during the April-August period was 2.4%, down from 5.3% in the corresponding period of the last fiscal.
Also read: India’s Factory Output Contracts for First Time in 21 Months
Other crucial data points include:
1) Capital goods output contracted by 21% in August against a contraction of 7.1% in the previous month.
2) Primary goods output grew 1.1% in August compared with 3.5% in July.
3) Infrastructure and construction goods output fell 4.5% compared with a 2.1% rise in July.
“Growth has been driven down sharply by consumer durables and capital goods. Quite clearly, both the drivers of the economy are quite down and need a major push,” Madan Sabnavis, chief economist at CARE Ratings, told The Economic Times.
This article went live on October eleventh, two thousand nineteen, at thirty minutes past seven in the evening.The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.