17 out of the 23 industry groups in the manufacturing sector have shown negative growth during September 2019 as compared to September 2018.
India's economic slowdown has deepened further as the industrial production measured by the Index of Industrial Production (IIP) with base 2011-12 for September 2019 stands at 123.3, which is 4.3% lower as compared to the level in September 2018. The cumulative growth for the period April-September 2019 over the corresponding period of the previous year stands at 1.3%.
According to a report released by the Ministry of Statistics and Programme Implementation, the Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of September 2019 stand at 86.5, 126.5 and 158.7 respectively, with the corresponding growth rates of -8.5%, -3.9% and -2.6% as compared to September 2018. The cumulative growth in these three sectors during April-September 2019 over the corresponding period of 2018 was 1%, 1% and 3.8%, respectively.
In terms of industries, 17 out of the 23 industry groups in the manufacturing sector have shown negative growth during September 2019 as compared to the corresponding month of the previous year. The industry group ‘Manufacture of motor vehicles, trailers, and semi-trailers’ has shown the highest negative growth of -24.8%, followed by -23.6% in ‘Manufacture of furniture’ and -22% in ‘Manufacture of fabricated metal products, except machinery and equipment’.
On the other hand, the industry group ‘Manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials’ has shown the highest positive growth of 15.5%, followed by 9.2% in ‘Manufacture of basic metals’.
As per Use-based classification, the growth rates in September 2019 compared to September 2018 are -5.1% in Primary goods, -20.7% in Capital goods, 7.0% in Intermediate goods, and -6.4% in Infrastructure/ Construction Goods. The Consumer durables and Consumer non-durables have recorded growth of -9.9% and -0.4% respectively.
The Modi government has taken a series of steps to boost investment and growth to revive the sluggish economy, including a reduction in the corporate tax rate in September to 22% from 30% for enterprises not availing of any tax breaks and to 15% from 25% for new domestic manufacturing enterprises.
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