Data released by Ministry of Statistics & Programme Implementation has revealed that the Index of Industrial Production (IIP) shrank by 1.1 in August compared with an expansion of 4.3% in July.
“The Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of August 2019 stands at 126.6, which is 1.1 percent lower as compared to the level in the month of August 2018. The cumulative growth for the period April-August 2019 over the corresponding period of the previous year stands at 2.4 percent,” the release from the ministry said.
In terms of industries, 15 out of the 23 industry groups (as per 2-digit NIC -2008) 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 data released by the ministry said the industry group ‘Manufacture of motor vehicles, trailers and semi-trailers’ has shown the ‘highest negative growth of (-) 23.1 percent followed by (-) 21.7 percent in ‘Manufacture of machinery and equipment n.e.c.’ and (-) 18.0 percent in ‘Other manufacturing’.’
“On the other hand, the industry group ‘Manufacture of basic metals’ has shown the highest positive growth of 11.8 percent followed by 11.3 percent in ‘Manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials’ and 10.3 percent in ‘Manufacture of wearing apparel’,” it said.
This comes just da day after the Moody’s Investors Service slashed its 2019-20 GDP growth forecast for India to 5.8 % from 6.2 % earlier. It said that the Indian economic slowdown was experiencing a pronounced slowdown which is partly related to long-lasting factors.