India Industry June 2017

India

India: Industrial production contracts in June

August 11, 2017

Industrial output fell 0.1% annually in June, the worst result since June 2013 (May: +2.8% year-on-year). The downturn was led by falling manufacturing output, which dropped for the first time since November 2015. Electricity production also lost steam, while mining output grew at a slightly faster pace.

On a use-based classification, the production of primary, intermediate and capital goods all fell. The poor result is also influenced by the remarkable 8.0% increase seen in June 2016 as well as uncertainty ahead of the GST implementation.

Annual average growth in industrial production fell from 3.9% in May to 3.2% in April.

FocusEconomics panelists expect industrial production to increase 5.3% in fiscal year 2017, which is unchanged from last month’s forecast. For fiscal year 2018, the panel expects industrial output to expand 6.2%.


Author: Angela Bouzanis, Senior Economist

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India Industry June 2017

Note: Year-on-year and annual average variation of industrial production index in %.
Source: Ministry of Statistics and Programme Implementation (MOSPI) and FocusEconomics calculations.


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