Sharp Slide in Industrial Output on Eve of Deepavali

India’s index of industrial production (IIP) saw a sharp reversal in August, contracting by 0.1 per cent, in stark contrast to the 4.7 per cent growth in July, mostly because of significant contractions in mining and electricity generation.

- Ashish Sinha

Production of consumer durables only grew by 5.2 per cent in August, down from 8.3 per cent in July, while the output of non-durables witnessed alarming contractions, dropping by 4.5 per cent in August from (-) 4.3 per cent in July. Although the gross domestic product (GDP) data for the first quarter of FY2025 had suggested a recovery in private consumption, has this momentum been sustained?