Manufacturing sector grew at a mere 0.6 per cent
Industrial output grew 2 per cent in September. Though the growth is higher than 0.43 per cent recorded in August, the manufacturing sector, which constitutes about 76 per cent of all industrial production, grew at a mere 0.6 per cent from a year earlier.
Consumer durables and capital goods output showed double-digit contraction. “If neither the consumption nor investment sectors are performing well, then how can we talk about an economic revival,” Madan Sabnavis, Chief Economist at Care Ratings, told The Hindu. India’s economic growth in recent years has largely come from investments by private industry. While consumer durables production contracted by 10.8 per cent during September, capital goods output shrunk 13.3 per cent. “The bad performance of the consumer durables sector is surprising as it was expected that the clamp down on gold imports should have lifted consumer spending on these products ahead of the festive season,” Mr. Sabnavis added.
Production of electricity and consumer durables, however, grew at 12.9 per cent and 11.3 per cent, respectively.