Industrial production shrinks fifth month in a row, rate slows to 10.4%

Slowing pace of recovery and sluggish manufacturing output has experts worrying over Q2 GDP growth

Industrial production contracted for the fifth consecutive month in July, by 10.4 per cent, slower than June's 16.5 per cent. The rate of contraction, however, did not fall to a single digit, as was expected by many experts, raising the prospect of a delayed economic recovery.

The gamut of fall in industrial output has continuously reduced since April, when it saw a historic 57.6 per cent contraction, as the whole month was under lockdown to arrest the spread of Covid-19.

All the components of the Index of Industrial Production (IIP) — mining, manufacturing, and electricity — saw contraction, albeit at a smaller