India’s Index of Industrial Production for August 2019 stood at 1.1 per cent lower as compared to the August 2018 with key sectors like manufacturing and capital goods showing a sharp drop in output, according to official data . This signifies slowdown in economy.
The IIP for Mining, Manufacturing and Electricity August 2019 showed growth rates of 0.1 per cent, (-) 1.2 per cent and (-) 0.9 per cent as compared to August 2018 The cumulative growth in these three sectors during April-August 2019 over the corresponding period of 2018 has been 2.8 per cent, 2.1 per cent and 5.0 per cent respectively.
In terms of industries, 15 out of 23 industry groups in the manufacturing sector have shown negative growth during the month. The industry group ‘Manufacture of motor vehicles, trailers and semi-trailers’ has shown the highest negative growth of (-) 23.1 per cent followed by (-) 21.7 per cent in ‘Manufacture of machinery and equipment n.e.c.’ and (-) 18.0 per cent in‘Other manufacturing’.On the other hand, the industry group ‘Manufacture of basic metals’ has shown the highest positive growth of 11.8 per cent 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 per cent in ‘Manufacture of wearing apparel’, the offiial release stated.
As per use-based classification, the growth rates in August 2019 over August 2018 are 1.1 per cent in primary goods, (-) 21.0 per cent in capital goods, 7.0 per cent in intermediate goods and (-) 4.5 per cent in infrastructure/ construction goods I). The consumer durables and consumer non-durables have recorded growth of (-) 9.1 percent and 4.1 percent respectively.