India’s industrial output shrinks for second straight month in August, falls by 0.7 per cent

The federal statistics office plans to revise and rebase the industrial production index in the next six months to better capture the changes taking place in the economy.

By: Reuters | New Delhi | Updated: October 10, 2016 8:04 pm
industrial output, capital goods, india production, india economy, india economy growth, india manufacturing, india manufacturing growth, india business news, business news (Representational image)

India’s industrial output contracted for a second straight month in August, falling by 0.7 percent from a year earlier, led by declines in mining and manufacturing production, government data showed on Monday Economists surveyed by Reuters had forecast a 0.2 percent annual fall in output compared with a revised 2.5 percent year-on-year decline in July.

Production at mines plunged 5.6 percent in August from a year earlier. Manufacturing output fell 0.3 percent year on-year. In a sign of anaemic investment, capital goods production shrank 22.2 percent. Consumer goods grew just 1.1 percent from a year ago, pointing to a tepid consumer demand.

Industrial output figures have paled in significance since last year, when New Delhi revamped the method it uses to calculate gross domestic product. The new method takes into account gross value addition in goods and services, a departure from the old practice that factored in volume-based indicators such as industrial output.

That helps to explain why India remains the fastest growing major economy despite sluggish measures of industrial production. The federal statistics office plans to revise and rebase the industrial production index in the next six months to better capture the changes taking place in the economy.

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  1. R
    Raj
    Oct 10, 2016 at 1:57 pm
    Are we not saving the cow? Who cares about economy.
    Reply
    1. R
      Raj
      Oct 10, 2016 at 2:00 pm
      He he he...kuchh bhi
      Reply
      1. R
        Raj
        Oct 10, 2016 at 5:48 pm
        ...and you are useless
        Reply
        1. T
          Thimna
          Oct 10, 2016 at 5:15 pm
          No-ball prize for economics to Shri Narendrabhaiji Damodadarji Modiji.
          Reply
          1. T
            Thimna
            Oct 10, 2016 at 5:07 pm
            You are a .
            Reply
            1. T
              Thimna
              Oct 10, 2016 at 5:10 pm
              You are a ......
              Reply
              1. T
                Thimna
                Oct 10, 2016 at 5:11 pm
                You are a ..........
                Reply
                1. T
                  Thimna
                  Oct 10, 2016 at 5:05 pm
                  You are a Western Iran origin Indian nationalist.
                  Reply
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