New Delhi: Decline in manufacturing activity, contracted India’s December factory output by minus 0.3 per cent from a rise of 1.82 per cent in November and 0.5 per cent during the corresponding period of the previous year.
The downslide has countered the hopes of a recovery, which is being fueled by the consecutive rise in GST collections and a renewed impetus seen in the manufacturing sector over the past couple of months.
The Index of Industrial Production (IIP) showed industrial output at pan-India level dipping by 0.3 percentage points in December, as compared to the previous month. In November 2019, the IIP recorded an increase of 1.82 per cent. A section of economists, who had linked the recovery to the festive season, have been validated as the industrial output has once again recorded a fall.
The fall in industrial output comes amid an apparent liquidity crisis in the nation, with several studies pointing towards the dearth of spendable income in the hands of people. The Opposition also trained guns at the Narendra Modi government for allegedly failing to address the slump in demand.
-IANS