DN&V Correspondent
New Delhi, November 12: With no let up in continuing economic slide, the country’s industrial production in September has further gone down. The industrial production has deteriorated for the second month at 4.3% in September, which is lowest since April 2012.
According to data released by the statistics department, the fall is all-round in industrial output in mining, manufacturing and electricity, which has indicated worsening economic crisis in the country. With this the gross domestic product (GDP) growth is likely to 5% in quarter ending September 2019. The data indicated that investment demand in economy shrinking 20.7%, signalling continuing fall in consumption demand.
With the prevailing situation business confidence index (BCI) has also gone down to the lowest in six years in the three months to October. A survey of National Council of Applied Economic Research (NCAER) indicated that business Confidence Index (BCI) has declined 15.3% to 103.1% from preceding three months. The numbers suggested a deep and all- pervasive worsening of business sentiments, said NCAER. According to last month’s RBI monetary policy the consumer confidence has also dropped to a six-year low in September as sentiments around employment, income and discretionary spending declined. The RBI said consumer confidence weakened in September with both current situation index and future expectations index recording decline. Despite the central government taking several corrective measures, including reduction in corporate taxes, there is so far no improvement in the situation and the Indian businesses have been struggling to overcome demand slowdown and liquidity crunch.
