India's Industrial Output Unexpectedly Declines, Exports Fall

(RTTNews) - India's industrial production declined from last year in May, contrary to economists' forecast for an increase, latest data showed Friday.

Separate data from the government today showed that merchandise exports from the Asian country contracted notably in the month of June as weak global demand continued to put pressure on its foreign trade.

Overall industrial production declined 1.6 percent on an annual basis in May, the Central Statistics Office said. Economists' were looking for a 1.4 percent increase. In April, production had recorded a 2.1 percent growth, which was revised down from 2.3 percent.

Driving the slump in overall industrial activity, manufacturing production dropped 2 percent from a year earlier. Among sub-sectors, eleven out of the twenty-two industry groups in the manufacturing sector have shown negative growth during the month, the agency said.

Mining output fell by 5.7 percent from a year earlier, while electricity production increased by 6.2 percent.

During the April-May period, industrial production edged up 0.1 percent from the corresponding period a year earlier, helped by a 0.1 percent rise in manufacturing output and a 5.3 percent gain in electricity production.

Elsewhere, data released by by the Commerce Ministry showed that India's goods exports decreased 4.56 percent on an annual basis to $23.786 billion in June. At the same time, the value of imports edged down 0.37 percent year-on-year to $36.03 billion, reflecting mainly the government's curb on gold and silver purchases.

Net trade for the month resulted in a deficit of $12.25 billion, higher than the $11.24 billion shortfall recorded a year earlier.

During the three months ended June, shipments decreased 1.41 percent annually to $72.456 billion, while imports increased by 6 percent to $122.636 billion.