The Industrial output in the country slipped into negative territory in June owing to manufacturing sector showing contraction.
Figures for the Index of Industrial Production (IIP) released by the government on Friday showed national factory output contracting by 0.1%, a four-year low, as compared to the revised 2.8% rise seen in the previous month of May.
This was primarily because of the manufacturing sector, which constitutes more than three-fourths of the index, falling in June by 0.4% after a 2.6% rise in the previous month of May.
While the other sectors within IIP managed to have positive growth, mining (0.4%) and electricity (2.1%) sectors were in the negative. While the corresponding figure for the previous month of May was 0.19% for mining it was a healthy 8.28% for electricity.
However, the volatile capital goods segment, which is generally taken as an indicator of industrial activity, continued to fall by 6.8% in June, accelerating from May when it had fallen by 1.38%.
Among the other used based categories, apart from consumer non-durables, which rose by 4.9%, all other fell in June. The crucial category of consumer durables fell by 2.1% solidifying the view of economists that consumer demand is still lagging.
Incidentally, the June data represents the last month before the Goods and Services tax was rolled out from July 1.
It is also the fourth instance of IIP being calculated under the new updated base of 2011-12.