Industrial production in India contracted 0.8% in August
17 Oct 2022
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Industrial production in India, based on the Index of Industrial Production (IIP) contracted 0.8 per cent year-on-year in August, hitting an 18-month low, on the back of a decline in manufacturing and mining sector output, quick estimates released by the ministry of statistics and programme implementation on Wednesday showed.
The previous low in industrial output growth was a contraction of 3.2 per cent in February 2021.
Factory output, measured in terms of the IIP, had expanded by 13 per cent in August 2021. The IIP grew 2.2 per cent in July this year, as per the ministry data.
During April-August this year, IIP rose 7.7 per cent against the 29 per cent growth recorded in the same period a year ago.
Production in the manufacturing sector declined by 0.7 per cent in August 2022 against the 11.1 per cent growth recorded in the year-ago period. Power generation showed a growth of 1.4 per cent against a 16 per cent expansion a year ago. Production in the mining sector contracted by 3.9 per cent in August 2022, against a growth of 23.3 per cent in the year-ago period. The Indices of Industrial Production for the mining, manufacturing and electricity sectors for August 2022 stood at 99.6, 131.0 and 191.3, respectively.
Capital goods output, which is a barometer of investments, rose five per cent in August 2022 compared to 20 per cent in the year-ago month. Output growth in the consumer durables segment declined 2.5 per cent from 11.1 per cent a year ago. The primary goods segment, which accounts for nearly 34 per cent of the index, expanded 1.7 per cent in August compared to 16.9 per cent growth in the year-ago period. The ministry said the growth rates in the corresponding period of the previous year are to be interpreted, considering the unusual circumstances on account of the Covid-19 pandemic since March 2020.
