The figures released by the government on Friday suggested that the industrial output declined by 1.1 per cent in August due to dismal performance by several sector including manufacturing, power generation and mining sectors.
The cumulative industrial growth over the April-August period stood at 2.4%.
Consumer durables output too declined by 9.1 percent in August 2019 as against 5.5 percent growth in the same month of 2018.
In terms of industries, 15 out of the 23 industry groups in the manufacturing sector registered negative growth during the month of August 2019 as compared to the corresponding month of the previous year.
As per the data, the output rate of the manufacturing sector fell (-) 1.2 per cent in August from a year-on-year (YoY) rise of 5.2 per cent.
India's industrial output contracted 1.1% in August compared to the same month past year, government data showed on Friday.
As per use-based classification, primary goods grew at 1.1 per cent in August 2019, whereas Capital goods reported a de-growth of 21 per cent.
For the April-June period, the eight infrastructure sectors averaged a 3.6 percent growth. Annual GDP growth slowed to 6.8 percent for the year that ended on March 31 from 7.2 percent in the previous year.
Data released by Ministry of Statistics & Programme Implementation has revealed that the Index of Industrial Production (IIP) shrank by 1.1 in August compared with an expansion of 4.3% in July. This was its first such contraction in 21 months, showing the declining momentum of both investment and consumption.
The national income data have reinforced signs that were emanating from a slew of shop-end data, such as auto and consumer goods sales, often seen as proxy indicators to gauge trends in household spending. This may pave way for further monetary easing by the central bank for the sixth consecutive time in December.
"The Indian economy is presently facing a structural growth slowdown originating from declining household savings rate, and low food inflation and agricultural growth". Realizing that the economic downturn is sharper than it earlier anticipated, it pared down its full year growth forecast to 6.1% in 2019-20 from 6.9% projected earlier.