Manufacturing growth dips to 0.6% over slackening demand, global headwinds

A persisting liquidity crisis in the MSME added to the manufacturing sector's woes

Manufacturing growth slumped to a dismal rate of only 0.6 per cent in the first quarter (Q1) of the current fiscal year (2019-20 or FY20) from 3.1 per cent in the fourth quarter of 2018-19 (FY19).

In Q1FY19, manufacturing growth was 12.1 per cent. For the whole of FY19, the sector had clocked growth of 6.9 per cent, up from 5.9 per cent in the previous fiscal year.

The share of manufacturing in gross domestic product (GDP) came down to 15.3 per cent in Q1FY20 against 16.2 per cent in Q1FY19. The government’s flagship programme, Make in India, aims to increase this