Reflecting worsening economic situation, the industrial output in the country declined in June by 1.8 per cent, the third fall in four months, mainly due to sharp dip in manufacturing and capital goods sector.
While the Planning Commission deputy chairperson Montek Singh Ahluwalia described the Index of Industrial Production (IIP) numbers for June as 'disappointing', industry chambers and other experts demanded immediate policy action to prevent further decline. The declining factory output may increase pressure on the finance minister P Chidambaram to quickly move ahead with the initiatives announced by him last week to boost investments to retrieve the situation.
As per the official data released on Thursday, the IIP growth in June declined by 1.8 per cent from a healthy growth rate of 9.5 per cent in the corresponding period last year. During the April-June of the current fiscal, IIP growth works out to be -0.1 per cent, as compared to a positive growth rate of 6.9 per cent in the same period last fiscal.
The decline has been mainly on account of poor performance of the capital goods sector, which reported a negative growth of 27.9 per cent in June. The manufacturing sector growth too contracted by 3.2 per cent during the month. 'The industrial numbers have been disappointing for the first few months ... I do not see robust industrial growth in the current fiscal,' Ahluwalia said.
The performance of the manufacturing sector, which constitutes over 75 per cent of the index, was also dismal in April-June quarter, as the output declined by 0.7 per cent against a growth of 7.7 per cent in the three-month period a year ago. The capital goods production also contracted in April-June period by 19.6 per cent against a growth of 17 per cent during the same period of last year.
While the Planning Commission deputy chairperson Montek Singh Ahluwalia described the Index of Industrial Production (IIP) numbers for June as 'disappointing', industry chambers and other experts demanded immediate policy action to prevent further decline. The declining factory output may increase pressure on the finance minister P Chidambaram to quickly move ahead with the initiatives announced by him last week to boost investments to retrieve the situation.
As per the official data released on Thursday, the IIP growth in June declined by 1.8 per cent from a healthy growth rate of 9.5 per cent in the corresponding period last year. During the April-June of the current fiscal, IIP growth works out to be -0.1 per cent, as compared to a positive growth rate of 6.9 per cent in the same period last fiscal.
The decline has been mainly on account of poor performance of the capital goods sector, which reported a negative growth of 27.9 per cent in June. The manufacturing sector growth too contracted by 3.2 per cent during the month. 'The industrial numbers have been disappointing for the first few months ... I do not see robust industrial growth in the current fiscal,' Ahluwalia said.
The performance of the manufacturing sector, which constitutes over 75 per cent of the index, was also dismal in April-June quarter, as the output declined by 0.7 per cent against a growth of 7.7 per cent in the three-month period a year ago. The capital goods production also contracted in April-June period by 19.6 per cent against a growth of 17 per cent during the same period of last year.