India's Industrial Production Contracted 4.3 Percent in September 2019

India’s Industrial production, measured by index of industrial production (IIP), contracted 4.3 percent YoY in September compared to a revised 1.1 percent decline in August 2019, dragged down by all sectors. Earlier released data on core infrastructure industries, that accounts around 40 percent weightage in the IIP index, had suggested  the decline the industrial production. The contraction in the industrial output adds to the concerns amid slow economic growth.

Sectoral Performance of IIP: 

• Manufacturing industries output that contributes over 77 percent to the IIP, contracted 3.9 percent YoY in September as compared to 1.6 percent growth in August 2019. Seventeen out of twenty-three manufacturing industry groups contracted in September.
• Electricity generation contracted 2.6 percent YoY in September as compared to 0.9 percent decline in August 2019.
• Mining output contracted 8.5 percent YoY in September as compared to 0.1 percent growth in previous month.

Use based segment performance of IIP:

• Primary goods contracted 5.1 percent YoY in September as compared to growth of 1 percent in August 2019.
• Capital goods output contracted 20.7 percent YoY in September as compared to contraction of 21.4 percent in August 2019, reflects subdued investment activity.
• Consumer durables output contracted further 9.9 percent YoY in September from decline of 9.1 percent YoY in August 2019.
• Consumer non-durables output, a barometer for the rural economy, contracted 0.4 percent YoY in September against a growth of 3.1 percent YoY in the previous month.
• Infrastructure and construction goods output declined 6.4 percent YoY in September as compared to decline of 4.8 percent in previous month.