APD | India’s industrial production slumps

By APD writer Rishika Chauhan

According to official data released on Monday, the manufacturing sector of India has slowdown and declined by 3.9 per cent in September.

The figures are more worrying as compared to last year. when factory output had expanded to 4.6 per cent.

The output of the power generation sector dropped by 2.6 per cent in September, while there had been a growth of 8.2 per cent in the year 2018.

Meanwhile, the mining output also decreased by 8.5 per cent, though last year 0.1 per cent growth was registered in the fiscal year.

A media report quoted Devendra Kumar Pant, Chief Economist and Senior Director, Public Finance, India Ratings and Research explaining, “This is first time after November 2012 that all three broad based sectors have contracted and lowest monthly growth in 2011-12 base year.”

“In old (2004-05) base IIP in October 2011 contracted by 5.0%. On quarterly basis, 2QFY20 IIP contracted 0.4% (1QFY20: 3.0%, 2QFY19: 5.3%), lowest quarterly in 2011-12 base,” he added.

However, sales of passenger vehicles grew by 0.28 per cent in October. This development is brining optimism among economists.

(ASIA PACIFIC DAILY)