India’s industrial output shrank by 0.1% in August 2024, its first contraction in 21 months, largely due to a high base effect and reduced activity in mining and electricity sectors.
The Index of Industrial Production (IIP) had grown 4.7% in July and 10.9% in August 2023. Mining output fell by 4.3% in August, impacted by heavy rainfall, while electricity output dropped by 3.7%. Manufacturing, which forms 77.6% of IIP, slipped to a 22-month low of 1%. Capital goods growth slowed to 0.7%, reflecting weaker investment sentiment.