NEW DELHI: India’s industrial output fell at the fastest pace in over sixyears in September, adding to a series of weak indicators that suggests thecountry’s economic slowdown is deep-rooted and interest rate cuts alone maynot be enough to revive growth.
Annual industrial output contracted 4.3pc in September, government datashowed on Monday. It was the worst performance since a 4.4pc contraction inFebruary 2013, according to Refinitiv data.
Analysts polled by Reuters had forecast industrial output to fall 2pc forthe month.
“A contraction of industrial production by 4.3pc in September is seriousand indicative of a significant slowdown as both investment and consumptiondemand have collapsed,” said Rupa Rege Nitsure, chief economist of L&TFinance Holdings.
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The industrial output figure is the latest in a series of worrying economicdata in Asia’s third-largest economy.
Earlier in the day, government data showed that India’s power demand fellat the fastest pace in at least 12 years in October, signalling a continueddecline in the industrial output. Electricity has about 8pc weighting inthe country’s index for industrial production.
