India's industrial output contracts 0.1% in June

Industrial production in the country contracted 0.1 per cent in June this year against a 1.7 per cent growth in May and a growth rate of 2 p[er cent in June last year,  government data based on quick estimates on the index of industrial production (IIP) showed.

Cumulative growth for the period April-June 2017 over the corresponding period of the previous year stands at 2.0 per cent.

Production in the mining, manufacturing and electricity sectors recorded growth rates of 0.4 per cent, (-) 0.4 per cent and 2.1 per cent, respectively in June 2017 while the cumulative growth in these three sectors during April-June 2017 stood at 1.2 per cent, 1.8 per cent and 5.3 per cent, respectively.

Fifteen out of the 23 industry groups in the manufacturing sector have shown negative growth during the month of June 2017, with the industry group 'manufacture of electrical equipment' showing the highest negative growth of (-) 20.1 per cent, followed by 'manufacture of fabricated metal products, except machinery and equipment' (-) 11.1 per cent and 'printing and reproduction of recorded media' (-) 10.5 per cent.

On the other hand, the industry group 'other manufacturing' has shown the highest growth of 28.1 per cent in June 2017, followed by 'manufacture of pharmaceuticals, medicinal chemical and botanical products' 19.2 per cent and 'manufacture of furniture' 11.7 per cent.

Primary goods production in June 2017 declined by 0.2 per cent and capital goods production by 6.8 per cent while production of intermediate goods was lower by 0.6 per cent and output in the infrastructure/construction goods sector increased by 0.6 per cent.

Output in the consumer durables and consumer non-durables have recorded growth rates of (-) 2.1 per cent and 4.9 per cent, respectively.