Industrial growth was -0.27% during April-August 2016, the lowest since at least 2007-08
Industrial growth during the first five months of the current fiscal year has been the lowest in at least 10 years, according to the Index of Industrial Production (IIP).
Chart 1 shows that industrial growth was -0.27% during April-August 2016, the lowest since at least 2007-08. Moreover, industrial growth so far this fiscal year has been even worse than during April-August 2009, immediately after the Lehman crisis. Far from a recovery, the IIP data indicates a deepening gloom in the industrial sector.
Graph 2 has the separation on the IIP information for as far back as five years. Amid April-August this year, the assembling segment shrunk by 1.18%, the most exceedingly bad appearing in no less than five years. The constriction has been the most in capital products, as the graph appears and it's far more atrocious than the compression in 2012-13.
For buyer non-durables as well, development has been the slightest in the most recent five years, with the dry spell in the most recent two years bearing part of the fault. Buyer durables are the main brilliant spot in the mechanical area, albeit here too development in the initial five months of the current financial year has been lower than a year back.