New Delhi: Not only the automobile sector which is going through a tough phase, the manufacturing, power generation and mining sectors are also going through the same phase as new government data on Friday showed that the industrial output has declined by 1.1 per cent in August due to poor performance by these sectors.
The data showed that the decline was the sharpest in industrial output growth since February 2013. In August last year, the Index of Industrial Production (IIP) had expanded by 4.8 per cent. The manufacturing sector, which contributes over 77 per cent to the IIP, had expanded by 5.2 per cent in August last year but showed a decline of 1.2 per cent in output this year.
The Apart from this, the industry group ‘manufacture of motor vehicles, trailers and semi-trailers’ showed the growth of minus 23.1 per cent followed by minus 21.7 per cent in ‘manufacture of machinery and equipment’ and minus 18 per cent in ‘other manufacturing.’
Likewise, the electricity generation also went down by 0.9 per cent which had an expansion of 7.6 per cent last year. The mining sector’s growth rate was flat at 0.1 per cent this year. The overall IIP growth between April and August was only 2.4 per cent. It was 5.3 per cent last year.
According to another report, the industrial output in eight major industries slowed down to 2.1 per cent in July from 7.3 per cent last year. However, the index of eight core industries in July was higher compared with June, when it rose by just 0.7 per cent.
The eight core industries which showed a negative growth include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity.
As per data from the Ministry of Commerce & Industry, the cumulative growth in April-July of FY20 was 3 per cent compared with 5.9 per cent reported for the same period of the last financial year.