Due to slowdown in manufacturing and mining sector, the country's industrial production registered a decline of 4.3 per cent in September. In August, the index of industrial production (IIP) declined by 1.1 per cent. This is the biggest decline in the last eight years.
The IIP touched a low level in October 2011, when the IIP dropped by 5 per cent. The rate of industrial production is much lower than the September month of last year. In September last year, industrial production increased by 4.6 percent. According to the data released by the Ministry of Statistics and Program Implementation (base year 2011-12) IIP was 123.3 in September, which is 4.3 per cent lower than the same month last year.
The rate of growth of gross industrial production during April to September in the current financial year was recorded at 1.3 percent as compared to the same period of the previous year. According to the data, the production of the manufacturing sector registered a decline of 3.9 percent in the month of September, while mining work recorded a decline of 8.5 percent. Similarly, a 2.6 percent decline in power generation was recorded.
Meanwhile, according to the updated data obtained from the source agencies, the IIP estimate for August 2019 has been revised for the first time. Out of the 23 industrial clusters in the manufacturing sector, 17 industries have declined in production. The manufacturing sector accounts for 77 percent of the IIP. Earlier in October 2014, the manufacturing sector's production had decreased by 1.8 percent.
The ministry statement said, "The manufacturing of motor vehicles, trailers and semi-trailer has declined by 24.8 percent respectively. After this, the manufacturing of furniture has come down by 23.6 percent. Production of primary goods declined by 5.1 per cent in September. Similarly, there has been a decline of 20.7 percent in the production of capital goods.
Significantly, there is constant negative news on the economy front in the country. Because of this, many rating agencies have reduced the GDP growth estimate of the Indian economy.
