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Industrial production growth in June at 2%; lowest since February

Factory output, as measured by the Index of Industrial Production (IIP), had expanded by 7 per cent in June 2018.(Express archive photo: Tashi Tobgyal)

India s industrial production growth declined to a four-month low of 2 per cent in June, on the back of poor performance of mining and manufacturing sectors, government data released on Friday showed. Factory output, as measured by the Index of Industrial Production (IIP), showed expansion of 7 per cent compared to June last year.

The last lowest reading in IIP growth was in February this year, when it had inched up 0.2 per cent. Since then, the index grew at 2.7 per cent in March, 4.3 per cent in April and 4.6 per cent in May.

Data released by the Ministry of Statistics and Programme Implementation (MoSPI) showed that for the April-June quarter this fiscal, industrial output grew at 3.6 per cent, sliding from 5.1 per cent growth a year ago.

Manufacturing sector witnessed a slowdown, recording growth of 1.2 per cent in June as against 6.9 per cent a year ago. Capital goods segment, an indicator of investment, posted contraction of 6.5 per cent compared to 9.7 per cent growth in June 2018. Growth in mining fell to 1.6 per cent this June from 6.5 per cent in the same month of last fiscal.

Expansion in the power generation sector was at 8.2 per cent, slightly below 8.5 per cent in June 2018. As per use-based classification, primary goods segment increased 0.5 per cent, intermediate goods 12.4 per cent and infrastructure/construction goods (-) 1.8 per cent in June 2019. Consumer durables and non-durables saw growth of (-) 5.5 per cent and 7.8 per cent, respectively.

In terms of industries, eight out of 23 industry groups in manufacturing sector recorded positive growth in June 2019 when compared to the same month a year ago. The Manufacture of basic metals industry group recorded highest growth of 17.7 per cent, followed by 16.5 per cent in food products and 10.3 per cent in tobacco products.

Meanwhile, the Manufacture of paper and paper products industry group reported the highest negative growth of (-) 19.9 per cent, followed by Manufacture of furniture with (-) 14.3 per cent and Manufacture of motor vehicles, trailers and semi-trailers with (-) 13.9 per cent.

(WITH PTI inputs)