Industrial output growth slows to 2.1% in June


New Delhi, Aug 12 (PTI): Industrial output grew by 2.1 per cent in June, although down from 4.2 per cent a year ago, on account of poor show by manufacturing and heavy contraction in capital goods production.

On cumulative basis, the factory output in the April-June quarter grew by 0.6 per cent compared to 3.3 per cent growth in the year-ago period. The June growth was however higher than 1.1 per cent (revised from 1.2 per cent provisionally) in May.

Factory output, measured in terms of the Index of Industrial Production (IIP), showed that the manufacturing sector that constitutes over 75 per cent of the index saw a meager growth of 0.9 per cent in June compared to 5.2 per cent a year ago.

For the April-June quarter, this sector's output showed contraction by 0.7 per cent, as against a growth of 3.7 per cent a year ago.

The capital goods output registered a steep decline of 16.5 per cent in June over a contraction of 2 per cent in last year. In April-June, the production of these goods, which are considered as barometer for investment, declined by 18 per cent compared to a growth of 2 per cent in year ago period.

Growth in output of consumer durables decelerated to 5.6 per cent in June compared to 16.1 per cent a year ago. The consumer non-durable goods also recorded low growth of 1 per cent in June compared to 2.3 per cent a year ago.

Overall, consumer goods production recorded a growth 2.8 per cent in June compared to 7.2 per cent a year ago.

However, the power generation recorded an impressive growth of 8.3 per cent in June compared to 1.2 per cent in the same month a year ago.

The mining sector recorded a growth of 4.7 per cent in June year as against a contraction of 0.4 per cent a year ago.

In terms of industries, 18 out of 22 industry groups in the manufacturing sector have shown positive growth during the month of June.

As per Use-based classification, the growth rates in June 2016 over June 2015 are 5.9 per cent in Basic goods, (-)16.5 per cent in Capital goods and 6.1 per cent in Intermediate goods.

  

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Comment on this article

  • Godwin, Mangalore

    Sat, Aug 13 2016

    This is all due to PM's Fake propaganda,Cow Governance and rape mentality which has drawn worlds attention.The result is no investors,no buyers...the end result you know.

    DisAgree Agree [2] Reply Report Abuse

  • Vincent Rodrigues., Frazer Town,Bangalore

    Sat, Aug 13 2016

    This is disgusting performance indeed quite contrary to the speeches of PM on different forum and the country is really turning towards backward.

    DisAgree Agree [8] Reply Report Abuse

  • Nithin, Manipal

    Sat, Aug 13 2016

    India is rocking under fekus rule...

    DisAgree [1] Agree [7] Reply Report Abuse

  • Lydia Lobo, Kadri

    Sat, Aug 13 2016

    Good governance established to give Indians 'Congress Mukh Bhaarat' !

    Misery does not end here, you need to put up with it for three more years !

    Enjoy !

    DisAgree Agree [10] Reply Report Abuse

  • Manoj, Manipal

    Sat, Aug 13 2016

    Now blind bhakths will say it's because monsoon effects... lol

    DisAgree Agree [12] Reply Report Abuse

  • Nalin Moolya, Mangalore

    Sat, Aug 13 2016

    Foreign tour effects India is shining...

    DisAgree Agree [11] Reply Report Abuse

  • A. S. Mathew, U.S.A.

    Sat, Aug 13 2016

    How Modiji was so gracious to make a short visit to UAE for three days, the second day his personal chef was flown in because he greatly missed the home-made cooking. He was anticipating to get $ 500 billion from their Sovereign Wealth Fund through delivering the aacha din message as usual. How much India got so far?

    According to the International Energy Agency, the oil consumption in India is slowing down which easily reveals that the Indian economy is slowing down over all.

    DisAgree Agree [4] Reply Report Abuse

  • John, Udupi

    Sat, Aug 13 2016

    How much they mislead or how much they fake, truth will come out one day!. Selfies and tours don't give growth!. When there was slight growth, bakhts credited Modiji!. Hope they credit the slow growth to Modiji and not say MMS was responsible!!!. I know these type of articles are invisible to Bakhts!

    DisAgree Agree [14] Reply Report Abuse

  • Godwin, Mangalore

    Sat, Aug 13 2016

    Make in India effect..

    DisAgree [1] Agree [11] Reply Report Abuse

  • A. S. Mathew, U.S.A.

    Fri, Aug 12 2016

    Industrial output is down, also the export volume down by 6.5%. Where the made in goods are exported? As predicted by Arun Jaitly, the world record breaking GDP growth of 10% will be reached very soon under the aachi din rule of India.

    DisAgree Agree [9] Reply Report Abuse

  • Jossey Saldanha, Nashville

    Fri, Aug 12 2016

    7.6% growth was also FAKE ...

    DisAgree Agree [18] Reply Report Abuse

  • geoffrey, hat hill

    Sat, Aug 13 2016

    ...just as fake as inflow of tons of FDI due to umpteen overseas trips!

    DisAgree Agree [12] Reply Report Abuse

  • A. S. Mathew, U.S.A.

    Sat, Aug 13 2016

    The World Bank, S&P etc are questioning the GDP statements of India already.

    DisAgree Agree [4] Reply Report Abuse


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