Economic Gloom Continues to Grip India; Industrial Production Shrinks to -1.1%

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New Delhi (Sputnik): A global economic downturn is affecting India’s industry despite efforts by lawmakers and business leaders to present a positive financial picture.

According to the latest data from the Indian Ministry of Statistics & Programme Implementation, the economic slump continues in India, with industrial production and factory output shrinking to -1.1 percent in August compared with a July expansion of 4.3 percent.

The Indian government introduced a range of market-friendly changes, including withdrawing of surcharge on income of foreign portfolio investors (FPIs) and reducing corporate tax to boost private investment.

The Index of Industrial Production (IIP) had expanded by 4.8 percent in August 2018. "15 out of 23 industry groups in the manufacturing sector have shown negative growth during August 2019 as compared to the corresponding month of the previous year," a Ministry of Statistics & Programme Implementation statement said.

Factory output growth declined in August in the manufacturing, power generation and mining sectors, official data released on Friday showed. All major automakers saw a high double-digit decline in September.

India's factory output had grown at 4.3 percent, per Index of Industrial Production (IIP) data released in July. The IIP for June, however, was 2 percent.

An estimated one million jobs are reported to be at risk if auto sales do not rise, according to reports.

With capital goods (plants & machinery) production slipping into negative territory, it has been confirmed by sources that industrial capabilities are at 70 percent of total capacity, according to reports.

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