India’s industrial output dips, contracts by 0.1% in June
The factory output, as per the new Index of Industrial Production (IIP) with revised base year of 2011-12, declined by (-)0.1 per cent during June from a rise of 2.80 per cent reported for May, 2017.business Updated: Aug 11, 2017 19:45 IST
Industrial output entered the negative territory in June contracting by 0.1% mainly due to decline in manufacturing and capital goods sectors.
Besides, segments like mining, power generation, infrastructure/construction goods and consumer durables recorded poor performance.
Factory output, measured in terms of Index of Industrial Production, grew 8% in June 2016, according to the data released by the Central Statistics Office today.
On a quarterly basis, factory output growth during April-June slowed down to 2% from 7.1% in the corresponding period last year.
This is the first time in the current fiscal, the industrial output has shown a decline. The IIP grew by 3.4% in April and 2.8% May as per the revised estimates released on Friday.
Manufacturing sector, which constitutes over 77% of the index, showed a decline of 0.4% in June as compared to a growth of 7.5% in the same month last year.
The output of mining and electricity sectors during the month decelerated to 0.4% and 2.1% from 10.2 per cent and 9.8% respectively in June last year.
Capital goods output, which is the barometer of investment, declined by 6.8 per cent from a growth of 14.8 per cent a year ago.
Similarly, the output of primary goods and intermediate goods during the month declined by 0.2 per cent and 0.6 per cent as against growth of 8.2 per cent and 6 per cent respectively during June last year.
The Consumer durables and Consumer non-durables have recorded growth of (-) 2.1 per cent and 4.9 per cent respectively.
In terms of industries, 15 out of 23 industry groups in the manufacturing sector have shown negative growth during the month of June 2017 as compared to the corresponding month of the previous year.