India’s fiscal year started on a gloomy note in 2016 as the official data showed on Friday that the country’s factory output had fallen by 0.8 percent in April against a marginal growth of 0.30 percent in the month before and 3 percent in April last year, .
An ANI reports quoted the data on Index of Industrial Production (IIP) released by the Central Statistics Office (CSO) stating that the fall was mainly on account of a 3.1 per cent drop in manufacturing output, which also has the maximum weight in the overall index.
Among the other two major sub-indices, while the one for electricity generation rose a robust 14.6 percent, that for mining expanded by just 1.4 per cent.
Manufacturing sector which constitutes over 75 percent of the index, contracted by 3.1 per cent in April this year compared to a growth of 3.9 per cent in same month last year.
Similarly the capital goods output, as reported by PTI, which is a barometer of investment, declined sharply by 24.9 per cent in April compared to a growth of 5.5 per cent during the same month last year.
Showing lower demand, overall consumer goods output dipped by 1.2 per cent in month under review as against a growth of 2.8 per cent year ago.
The consumer non-durable segment showed decline in output by 9.7 per cent compared to a growth of 3.7 per cent year ago.
However, the consumer durable sector showed an uptrend by recording a growth of 11.8 per cent, up from 1.3 per cent a year ago.