In the last two years, Industrial output contracted for the first time.
India’s factory output, measured by the Index of Industrial Production (IIP), has contracted by 0.1 percent for the first time in two years.
The industrial output contracted due to a high base effect along with a decline in mining and electricity output.
The overall industrial output had grown by 4.7 percent in July and 10.9 percent in August 2023.
In the financial year 2024-25, industrial growth was recorded at 4.2 per cent during April-August, against 6.2 per cent in the previous financial year.
Mining output recorded a contraction of 4.3 per cent in August as compared to a growth of 3.8 per cent in July.
Electricity output also recorded a contraction of 3.7 per cent in August as compared with 7.9 per cent in July.
Manufacturing also slipped to a 22-month low of 1.0 per cent in August.
