Slowdown Blues: India's industrial output growth declines to 2% in June

India's factory output growth, measured by the Index of Industrial Production (IIP), slowed to 2 per cent in June 2019, as compared to 7 per cent in June 2018. IIP levels stood at 130.2 during the month, data released by Central Statistics Office showed. Meanwhile, cumulative growth for the April-June period was 3.6 per cent in comparison to corresponding period last year.

The Index of Industrial Production refers to growth rates in different industry groups to ascertain their economic health.

Manufacturing sector saw its growth rate slow down to 1.2 per cent, as opposed to 6.9 per cent in June 2018. Mining sector fared similarly with growth rate at 1.6 per cent, against 6.5 per cent in June 2018. Power generation fared comparatively better with growth rate of 8.2 per cent in comparison to 8.5 per cent during the year-ago period. The cumulative growth rates in these three sectors during April-June 2019 over the corresponding period of 2018 were 3.0 percent, 3.1 percent and 7.2 percent respectively.

ALSO READ: Forex reserves decline by $697 million due to fall in currency assets

According to use-based classification, primary goods managed a marginal growth of 0.5 per cent, whereas intermediate goods grew by 12.4 per cent in June 2019 over June 2018. Capital goods registered a decline of 6.5 per cent, while infrastructure and construction goods fell by 1.8 per cent during this period. Consumer durables posted a decline of 5.5 per cent, as consumer non-durables grew by 7.8 per cent in the month of June 2019 as compared to June 2018.

Industry-wise, eight out of 23 industry groups in manufacturing sector showed positive growth during the month of June 2019 over June 2018.

During June 2019, industry group 'Manufacture of basic metals' showed the highest positive growth of 17.7 percent, followed by 16.5 percent in 'Manufacture of food products' and 10.3 percent in 'Manufacture of tobacco products'.

ALSO READ: Economically-ruined Pakistan's decision to suspend trade makes no dent on India; here's why

Meanwhile, industry groups 'Manufacture of paper and paper products', 'Manufacture of furniture' and 'Manufacture of motor vehicles, trailers and semi-trailers' saw outputs decline by 19.9 per cent, 14.3 per cent and 13.9 per cent, respectively, during the month.

With IIP figures for June 2019, the indices for May 2019 have been revised for the first time, and those for March 2019 undergone the final revision following updated data from different source agencies. The increase in first and final revisions is mainly due to increase in production related to steel items reported by concerned source agency, the Central Statistics Office said in a statement.