In July, industrial production grew 3.3% over the same month last year, according to the so-called quick estimate for the index of industrial production (IIP). The figure represents the slowest pace of expansion since October 2009, less than half the 8.8% expansion tallied in June, and below market expectations that had industrial production rising 6.2%. The moderation was entirely driven by slower growth in the manufacturing sector, which plummeted from a 10.3% increase in June to a paltry 2.3% rise in July. In contrast, growth in both the mining as well as the electricity sectors accelerated over the previous month. On a use-based classification, the deterioration was mainly driven by a contraction in the production of capital goods, which swung from a robust 38.2% expansion in June to a 15.2% contraction in July. Intermediate goods also contracted, whereas consumer goods increased mainly driven by higher output of consumer durables. Owing to the weak print, the trend in industrial production deteriorated, with annual average growth falling from 7.5% in June to 7.0% in July.
Industrial output decelerates
September 10, 2011
Looking for forecasts related to Industry in India? Download a sample report now.
India Economic News
October 17, 2016
Recently-released data related to India’s external sector showed that the trade deficit totaled USD 8.3 billion in September, which was a smaller shortfall than the USD 10.2 billion gap recorded in September 2015 (August 2016: USD 7.7 billion deficit).
October 15, 2016
In September, consumer prices fell 0.23% from the previous month, which followed August’s flat growth.
October 12, 2016
The fall in industrial production moderated in August, after recording the largest contraction since November 2015 in July.
October 5, 2016
Activity in India’s manufacturing sector lost steam in September.
October 4, 2016
The newly facelifted Reserve Bank of India (RBI) decided to ease monetary policy at a scheduled meeting on 4 October, cutting the repurchase rate from 6.50% to 6.25%—an over five-year low.