India’s industrial output continued to remain subdued at 0.1 percent in July as against 3.7 percent in the same month last year, following uncertainty in the global economy hurt exports, and the key infrastructure sector grew at its slowest pace in six months.
The cumulative growth for the period April-July 2012-13 over the corresponding period of the previous year stood at (-) 0.1 percent.
The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of July 2012 recorded at 123.2, 177.1 and 156.3 respectively, with the corresponding growth rates of (-)0.7 percent, (-)0.2 percent and 2.8 percent as compared to July 2011.
The cumulative growth in the three sectors during April-July 2012-13 over the corresponding period of 2011-12 has been (-) 0.9 percent, (-) 0.6percent and 5.5 percent respectively.
The IIP growth in June had declined by 1.8 percent from a healthy growth rate of 9.5 percent in the corresponding period last year.
Industrial output accounts for a little over 15 percent of India’s Gross Domestic Product and the consensus points to continuing weakness for the economy which languished near a three-year low of 5.5 percent annually in the three months to June.
Contraction in manufacturing spread further around the world in July and August as the euro zone’s troubles inflicted more damage on the global economy, business surveys showed.
Data already out showed India’s exports tanked almost 15 percent in July and have fallen four times in the last five months, with officials attributing weak demand from the United States and Europe for the fall.
Also, the country’s eight key infrastructure industries, which account for almost 40 percent of factory output, expanded just 1.8 percent in July, the slowest pace since January this year.
Agencies