Factory output contracts in March 2019, hit by low consumption & investment

  • Factory output, represented by the Index of Industrial Production, witnessed negative growth in March 2019, compared to a paltry 0.1% growth in the preceding month of February. The data released by the Central Statistics Office signals a slowdown in investment and growth. The development comes amid a slashing of growth forecasts for the Indian economy by both domestic as well as foreign institutions. The CSO has lowered the 2018-19 growth forecast to 7% while the International Monetary Fund says that India's GDP will grow at 7.3% in 2019-20, lower than its previous estimate of 7.5%.