According to government data released on Monday, growth of eight core industries dropped to 2.1 per cent in July. drop in growth, which comes amid Indian ecomy recording its lowest quarterly growth for 6.5 years, is being credited mainly to a contraction in coal, crude oil and natural gas production.

slowdown in industrial growth

Core industries including coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity comprise 40.27% weight in Index of Industrial Production (IIP) benchmark and h seen a comparatively much larger growth of 7.3 per cent in same month last year. While cumulative growth of sectors was about 5.9 per cent in first quarter of previous year, same was recorded at around 3 per cent for this year, meaning growth was almost halved.

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growth rate in production of steel, cement and electricity declined to 6.6%, 7.9% and 4.2%, respectively, as against 6.9%, 11.2% and 6.7% while output of coal, crude oil, natural gas and refinery products was recorded negative in a review.

According to a month-wise statistical reing, growth of se eight sectors have been declining ever since April this year. It came down to 5.2% in April from 5.8%. In May, it furr declined to 4.3% in May and 0.7% in June.

Steel production presented a marginal increase by 4.9% during month in comparison to data of April-February 2018-19 period where sector recorded a growth of 4.7%.

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GDP declines too

As per data released by NSO, GDP growth rate also slowed in Q1, falling to a six-year low at 5%, mainly due to a sharp dip in growth of manufacturing sector that has remained almost flat on growth chart at 0.6% growth. However, on a slightly positive te, fertiliser output presented a marginal growth by 1.5 per cent in July as against 1.3 per cent in July 2018. Ar well-performing sector was Cement with an increase in production by 8 per cent in February.

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government of India has, however, launched two waves of measures aimed at kick-starting ecomic growth. first wave entailed anuncements that were meant to re-assure wealth-creators that Centre intended to live up to PM Modi's Independence Day observation that wealth creators were a national wealth and t to be viewed with suspicion. second, comprising four massive PSB (Public Sector Bank) mergers, were aimed at resolving credit woes in order to propel India towards its $5 trillion ecomy goal.

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