Industrial output drops to minus 1.1 in August: seven-year low

(PTI) New delhi date. ૧૧

Industrial output fell to minus 8.2 percent in August, following poor performance of the capital goods and consumer durable sectors. Which is the weakest digit of the last seven years.

The government has suffered a major setback on the industrial production front. In August, the Index of Industrial Production (AIP) -based industrial output declined by 8.9 percent to minus 8.2 percent in July.

It is noteworthy that industrial production in August 1, 2013 was 8.5 percent. In July, it was 5.5 percent. For the first time in the last two years, industrial production has seen a decline. Prior to November 1, IIP-based industrial production was minus 7.5 percent.

According to data released today by the National Statistical Office (NSO), the manufacturing sector, which saw a sharp increase of 5 percent in the IIP, saw a decline of 5.5 percent. Which is a five-year low. Earlier, the industrial output of the manufacturing sector was minus 5.9 percent in October.

According to experts, the decline in industrial output was already partly due to the decline, but today the public figures are still very weak from the economy. The impact of the slowdown in the auto sector is also witnessing on industrial production. However, due to the reduction in interest rates by the RBI, industrial output will be seen in the coming period.

As of August 1, negative growth has been seen in 2 of the 7 industry groups in the manufacturing sector. Experts say that given the current trend, no significant increase in GDP will be seen even in the second quarter of FY 6-8.

In the electricity production sector as on August 1, the industrial output rate was minus 8.6 percent. That was 8.5 percent in August. While releasing the figures, the NSO said that the worst-case scenario in August was the capital goods sector. The industrial output of this sector has declined by 5%. The sector witnessed a growth of 8.5 per cent in August 1