India’s factory output declines 10.4% at a slower pace in July

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The decline in capital goods output was softer in July at 28.8 percent than the previous month’s 36.8 percent

India’s factory output declined 10.4 percent in July, mainly due to lower output of manufacturing, mining and power generation, said a government data on Friday.

The industrial production witnessed a sharp decline the previous month at 16.6 percent while it had expanded 4.9 percent in July last year.

According to the Index of Industrial Production (IIP) data, manufacturing sector production registered a decline of 11.1 percent, while the output of mining and power fell 13 percent and 2.5 percent, respectively.

The decline in capital goods output, which is an indicator for investment activity, was also softer in July at 28.8 percent than the previous month’s 36.8 percent.

Consumer durables output contracted in a slower pace at 23.6 percent in July as compared to the previous month. Consumer durables output witnessed growth of 2.4 percent in July 2019.

"In view of the preventive measures and announcement of nationwide lockdown by the government to contain the spread of COVID-19 pandemic, a large number of the industrial sector establishments were not operating from the end of March 2020 onwards. This has had an impact on the items being produced by the establishments during the period of lockdown. With the lifting of restrictions in the subsequent periods, industrial activity is resuming," the Ministry of Statistics and Programme Implementation said in a press release.

The Index for July 2020 stands at 118.1 as compared to 54.0, 89.5 and 108.9 in April, May and June 2020, respectively, it added.

Infographics: Ministry of Statastics

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