India's industrial output for July contracts 10.4%

India's industrial output contracted 10.4 percent in July as against a 4.9 percent growth year-on-year (YoY), as per the Index of Industrial Production (IIP) data released by the government on September 11.

This is against a 16.6 percent contraction in the month of June.

In July this year, the manufacturing sector contracted 11.1 percent as against a growth of 4.8 percent YoY. Mining sector contracted 13 percent vs a growth of 4.9 percent on year and electricity production contracted  2.5 percent as against a 5.2 percent growth in corresponding period last year.

"With the lifting of restrictions in the subsequent periods, industrial activity is resuming. The Index for the month of July 2020 stands at 118.1 as compared to 54.0, 89.5 and 108.9 for April 2020, May 2020 and June 2020," the Ministry of Statistics and Programme Implementation has said.

It added that the IIP for mining, manufacturing and electricity sectors for the month of July stood at 87.2, 118.8 and 166.3 respectively.

While releasing the IIP numbers for July 2020, the Centre noted that  "it may not be appropriate to compare the IIP in the post pandemic months with the IIP for months preceding the COVID 19 pandemic".

India's industrial output contracts 10.4 percent in July as against a 4.9 percent growth year-on-year (YoY), as per the Index of Industrial Production (IIP) data released by the government on September 11.

India's economy shrank 23.9 percent during the April-June quarter this year.

National income accounts data released on August 31 showed that India's "real" or inflation-adjusted gross domestic product (GDP) contracted 22.6 percent, the sharpest drop in 41 years, compared to a growth of 8.1 percent in the same quarter last year.