Industrial production shrinks 1.9% in October


NEW DELHI: India’s industrial growth fell 1.9% in October, after rising marginally last month. Rubber insulated cables, woollen carpets and leather garments made industrial output drop in the month.

Data released by the statistics office on Friday showed a 2.4% decline inmanufacturing production in October and a 1.1% fall in mining output. Manufacturing as a sector has the highest weight in the Index of Industrial Production (IIP). The pace of electricity generation improved 1.1%.

In the first seven months of 2016-17, mining output was fell 0.2% while manufacturing has contracted 1%. September IIP reading was revised to a 0.67% increase compared with the 0.7% rise reported earlier.

Capital goods output nosedived 25.9% in October. It has been falling for the last few months.

The slow pace of industrial activity was evident in 12 out of the 22 industry groups in the manufacturing sector in October. Consumer goods production fell 1.6% in October with the output of consumer non-durables — an indicator of rural demand –falling 3% and that of consumer durables, a gauge of urban demand, rising 0.2%.