Deep in the red: India's Sep industrial output shrinks 4.3% (2nd Lead)
Monday - November 11, 2019 8:18 pm , Category : BUSINESS
New Delhi, Nov 11 (IANS) Contraction in manufacturing along with mining activity and subdued demand environment plunged India's September 2019 factory output deep in the red.The Index of Industrial Production (IIP) declined (-) 4.3 per cent in September from (-) 1.40 per cent in August 2019.On a year-on-year basis, the growth rate of factory output during the month under review was lower than the 4.6 per cent during September 2018."The Quick Estimates of IIP with base 2011-12 for the month of September 2019 stands at 123.3, which is 4.3 per cent lower as compared to the level in the month of September 2018," the Ministry of Statistics & Programme Implementation said."The cumulative growth for the period April-September 2019 over the corresponding period of the previous year stands at 1.3 per cent."As per the data, the output rate of the manufacturing sector contracted by (-) 3.9 per cent in September from a YoY rise of 4.8 per cent.Similarly, other notable sectors such as mining and electricity saw a decline in production.According to the data, mining activity declined by 8.5 per cent from a flat growth of 0.1 per cent and the sub-index of electricity generation was lower by (-) 2.6 per cent from 8.2 per cent.Among the six use-based classification groups, the output of primary goods, which has the highest weightage of 34.04, declined by 5.1 per cent, whereas intermediate goods, which has the second highest weightage, increased by 7 per cent.The output of consumer non-durables inched down by 0.4 per cent, whereas that of consumer durables fell by (-) 9.9 per cent.In addition, output of infrastructure or construction goods decreased by (-) 6.4 per cent and that of capital goods fell by (-) 20.7 per cent.In terms of industries, 17 out of the 23 industry groups in the manufacturing sector have shown negative growth during the month under review as compared to the corresponding month of the previous year."The industry group 'manufacture of motor vehicles, trailers and semi-trailers' has shown the highest negative growth of (-) 24.8 per cent followed by (-) 23.6 per cent in 'manufacture of furniture' and (-) 22 per cent in 'manufacture of fabricated metal products, except machinery and equipment'," the ministry said."On the other hand, the industry group 'manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials' has shown the highest positive growth of 15.5 per cent followed by 9.2 per cent in 'manufacture of basic metals'."
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