India’s industrial production growth rate contracted by 16.6pc in June, while for Q1 (April-June) the decline was 35.9pc from the prior year period, according to official estimates. Industrial production was subdued in Q1 amid the COVID-19 pandemic and the ensuing nationwide lockdown in April and May, but industrial activities gradually resumed in June. In April and May the growth rate had contracted by 57.6pc and 33.9pc, respectively, from a year ago. The Industrial Production (IIP) Index stood at 107.8 in June compared to 53.6 in April and 89.5 in May. 

 

In June, production of basic metals fell by 24.5pc from a de-growth of 40.3pc in May, while manufacturing of fabricated metal products (except machinery and equipment) contracted by 34.7 compared to a drop of 53.6pc in May, from the prior year period. 

 

Mining production contracted by 19.8pc from prior June. Manufacturing output contributes three-fourths of the entire index, de-grew by 17.1pc in June compared to a contraction of 38.4pc in May. 

 

Infrastructure and construction goods output contracted by 21.3pc compared to a contraction of 40.7pc last month, while manufacturing of motor vehicles, trailers, semi-trailers de-grew by 48pc in June compared to a contraction of 81.7pc in May.

 

Earlier, India’s Reserve Bank had forecast a negative economic growth rate for 2019-20, but did not give a projection. Various estimates suggest India’s GDP could contract by atleast 5pc this fiscal, despite an expected recovery in the second half.    

 

 

Leave a Reply

Your email address will not be published.