Industrial growth of the country fell to a three-month low of two per cent in June from seven per cent in the comparable period last year, in yet another sign of the economy losing steam.

The Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of June 2019stands at 130.2, which is 2.0 percent higher as compared to the level in the month of June 2018, said an official statement. 

Earlier, the growth in six core industries plummeted to 0.2 per cent in June, the lowest since December 2015. 

The Central Statistics Office (CSO) data released on Friday showed that industrial production has been hit mainly on account of poor performance in the mining and manufacturing sectors. 

While the manufacturing sector logged a growth of 1.2 per cent in June from 6.9 in the similar period last year, the growth in the mining sector declined to 1.6 per cent from June, 2018. The slowdown in manufacturing is largely on account of weak consumption and drying up of fresh investment from the private sector. 

Comparatively, a slightly better performance was witnessed in the electricity sector. The sector saw a growth of 8.2 per cent in June from 8.5 last year. Monsoon months result in an increase in power generation from hydro and non-conventional energy sources. 

Earlier, JSW Steel in a statement had said that "Weaker automotive sales volumes and consumer durables sales in recent months is a matter of concern."

Dropping clear signs of impact of slowdown, the company said "Indian economic activities during the quarter were underpinned by a general lack of credit availability, resulting in muted business sentiments across various consuming sectors".

The cumulative growth for the period April-June 2019 over the corresponding period of the previous year stands at 3.6 percent, added the statement.

Published On : 09-08-2019

Source : Sme Times