Owing to poor performance by manufacturing, power generation and mining sectors, India’s industrial output declined by 1.1 per cent in August, news agency PTI reported quoting official data.
In August 2018, the Index of Industrial Production (IIP) had expanded by 4.8 per cent.
The manufacturing sector, which contributes over 77 per cent to the IIP, showed a dip of 1.2 per cent in output during August 2019 as opposed to a growth of 5.2 per cent in the same month of last year.
Electricity generation declined by 0.9 per cent as against an expansion of 7.6 per cent in the year ago month while the growth in the mining sector was flat at 0.1 per cent.
The overall IIP growth during April-August period was 2.4 per cent, down from 5.3 per cent in the corresponding period of the last fiscal.
The official data also showed that the worst performance came from the capital goods segment as its output shrank by over 21 per cent as against an expansion of 10.3 per cent in August last year. Consumer durables output too declined by 9.1 per cent in August 2019 as against 5.5 per cent growth in the same month of 2018.
In terms of industries, 15 out of the 23 industry groups in the manufacturing sector have shown negative growth during August 2019 as compared to the corresponding month of the previous year.
Earlier this month, the RBI revised downwards its GDP growth forecast for the current fiscal to 6.1 per cent from the previous estimate of 6.9 per cent after the first-quarter economic growth slipped to over six-year low of 5 per cent.
(With PTI inputs)