India’s industrial output decreases 0.7 pc in Aug

14 October, Kolkata

India’s industrial output decreased for the second month straight to 0.7 per cent in August 2016, compared to a contraction of 2.4 per cent in July 2016, while it grew 4.1 per cent in August the previous year, India Steel Market Watch (ISMW) reported.

The Index of Industrial Production (IIP) stood at 175.3 in August 2016, down by 0.7 per cent from August 2015. The IIP had turned positive in May after running into negative zone for two months in March and April 2016.

Mining and manufacturing sector decreased 5.6 per cent and 0.3 per cent, respectively,while electricity sector improved marginally to 0.1 per cent on a year-on-year basis. Production of capital goods, an indicator of investment demand in the economy, registered a steep decline of 22.2 per cent in the month, against a growth rate of 21.3 per cent in last year.

Factory output in April-August contracted by 0.3 per cent, compared to growth of 4.1 per cent in the year-ago period.In terms of industries, seven out of 22 industry groups in the manufacturing sector showed negative growth during August on year-on-year basis.