Capital goods production lower than five years ago?

If it is it true that the capital goods index in June 2016 is below the level it was in July 2011, the state of investment demand is dire indeed


Graphic: Ajay Negi/Mint
Graphic: Ajay Negi/Mint

The Index of Industrial Production’s capital goods index is an extremely volatile index. It is also well known that Indian industry suffers from plenty of spare capacity. Nevertheless, is it really true, as the chart shows, that the capital goods index in June 2016 is below the level it was in July 2011, or nearly five years ago? If true, the state of investment demand is dire indeed.

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