Is Indian economy going down further?
The recent Central Statistics Office (CSO) Data indicates this in saying the country’s industrial production has exhibited ‘worst performance in 7 years’ in September 2019.
According to CSO data, India’s Index of industrial production (IIP) has contracted 4.3% during the month due to decline in output from manufacturing, mining and power sectors.
- The manufacturing output saw a 3.9% decline in September 2019 over 4.8% growth in September 2018.
- Coming to power generation, the output fell 2.6 per cent this September compared to 8.2% rise a year ago.
- The output from mining sector was 8.5% in September 2019 against 0.1% climb in the September of the last fiscal.
- The production in capital goods sector declined by 20.7% in September 2019 compared to 6.9% in September 2018.
In terms of industry, 17 out of 23 manufacturing industry groups reported decline during September 2019 compared to the last year.
Overall, September 2019 saw 4.3% contraction registering the lowest in 2011-12 series of IIP unveiled in May 2017. The first year of IIP in April 2012 saw 0.7% decline.
However, September 2018 saw some positive growth by 4.6% in factory output, measured in terms of IIP.
Looking at the April-September 2019 period, the IIP rate remained flat at 1.3% compared to 5.2% year-on-year.