India’s industrial production grew by just 0.6 per cent in August, decelerating from a revised estimate of 2.75 per cent for July, as the manufacturing sector, which constitutes around three-fourths of the overall index, once again declined.
Mining sector remained depressed but electricity generation perked up, growing 7.2 per cent, as per quick estimates released by the government on Friday.
What further poses a question mark over the tentative revival in industry is a decline in production of capital goods, considered a barometer of upcoming industrial activity. Capital goods production declined 2 per cent in August even as basic goods production was up 1.5 per cent and intermediate goods recorded a 3.6 per cent rise over August 2012.
Consumer durables segment, a bellwether of consumer confidence, also declined 7.6 per cent though the consumer non-durables sector saw a 5 per cent growth. Overall consumer goods production slid 0.8 per cent.
The cumulative growth for April-August 2013 over the corresponding period of the previous year stood at 0.1 per cent.
In terms of industries, 14 of the 22 industry groups in the manufacturing sector posted positive growth during August compared with the corresponding month of the previous year. Electrical machinery and apparatus recorded the highest growth of 26 per cent, followed by 25.5 per cent in wearing apparel, dressing and dyeing of fur and 19.7 per cent growth in tobacco products.
On the other hand, radio, TV and communication equipment & apparatus posted a negative growth of 21.7 per cent, followed by a 21.6 per cent fall in furniture and a 15.5 per cent decline in machinery and equipment.
(Edited by Joby Puthuparampil Johnson)