IIP: India's Industrial Production Growth In June Slows To A 4-Month Low

Index of Industrial Production (IIP), a measure of factory output, expanded at 2 percent in June when compared to 7 percent in the same month of the previous year and 4.6 percent in May. The country's industrial growth appears to have slowed on mainly on account of poor performance in the mining and manufacturing sectors, according to government data released on Friday.

A slower expansion of growth in factory outout was last recorded in February at 0.2 percent. In March and April 2019, IIP grew at 2.7 percent and 4.3 percent, respectively.

Data released by the Ministry of Statistics and Programme Implementation showed that the industrial output grew at 3.6 percent in April-June quarter of the current financial year, as against 5.1 percent a year ago.

A slowdown was observed in the manufacturing sector, which grew at 1.2 percent in June 2019 as compared to 6.9 percent a year ago. Capital goods segment, which is a barometer of investment, saw a contraction of 6.5 percent in June compared to 9.7 percent growth a year ago. Mining growth dropped to 1.6 percent from 6.5 percent in June 2018.

Growth in consumer durables saw a contraction at -5.5 percent.

Meanwhile, an Economic Times report earlier this week said that he Ministry of Statistics and Programme Implementation (Mo-SPI) has set up a working group to revise the indicator's base to 2017-18 from 2011-12. It will also monitor if global practices are followed in its estimates. This comes after concerns raised over credibility of the important data presented by the department.