India's manufacturing capacity utilisation declines to the lowest ever

Capacity utilisation in India’s manufacturing sector plummeted to 68.9 per cent in the September quarter (Q2 FY20), its worst-ever level since 2008. It had reached a six-year high of 76 per cent two quarters ago, in March 2019, the Reserve Bank of India’s monetary policy committee (MPC) said in a statement on Thursday.

Capacity utilisation had improved gradually from 71 per cent in the aftermath of demonetisation to 76.1 per cent in January-March 2019.

“The slowdown in manufacturing activity was also reflected in the decline in capacity utilisation (CU) to 68.9 per cent in Q2FY20 from 73.6 per cent in Q1 in