India Staring At Economic Slowdown As Industrial Output Sinks
The industrial output, which has been shrinking for four months in a row, has fallen 16.6% in June 2020.
Seeing the current economic situation, it seems very likely that India is staring at a huge slowdown in the economy, even as the country’s industrial output has sunken 16.6% in June, on top of the 34% drop in May 2020. Data released by the National Statistical Office (NSO) showed that during the June quarter, the Index of Industrial Production (IIP) contracted 35.3%, which is something that will heavily affect the country’s GDP figures for the said quarter.
Amidst this economic struggle, private economists are saying that the Indian economy is staring at its worst downturn since the country gained independence from the British in 1947. In June, when a few COVID-19 lockdown restrictions were eased, manufacturing activity improved the sharpest with contraction in output coming down to 17.1%, against 38.4% from May. At the same time, contraction in mining (19.8%) and electricity (10%) sectors recovered only marginally. It remains to be seen what measures the Indian Government implements to deal with the crisis.
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