Industrial growth slips to 1.2% in July

Tribune News Service

New Delhi, September 12

Industrial production grew weaker than expected at 1.2% in July from 4.5% a year ago owing to the weak performance of the manufacturing sector partly on account of the GST transition issues.

Factory output measured in terms of index of industrial production had declined by 0.2% in June, according to revised estimates released by the Central Statistics Office (CSO) today. During April-July, IIP grew by 1.7%, down from 6.5% in the same period last year.

Growth of the manufacturing sector, which makes up 77.6% of the index, decelerated sharply to 0.1% in July compared to 5.3% in the same period of 2016.

Aditi Nayar, Principal Economist, ICRA said the pace of IIP growth was weaker than expected, with the stagnant manufacturing volumes belying the expectation of a boost led by restocking of inventories after the introduction of the GST. She said 15 of the 23 sub-groups of manufacturing recorded a year-on-year contraction in July.

Mfg down sharply 

• Factory output measured in terms of index of industrial production had declined by 0.2% in June, according to revised estimates released on Tuesday
• During April-July, IIP grew by 1.7%, down from 6.5% in the same period last year
• Growth of the manufacturing sector, which makes up 77.6% of the index, decelerated sharply to 0.1% in July compared to 5.3% in the same period of 2016