This could well be indicative of deepening slowdown in the economy. There has been a major drop in the output of eight core industries in October which collectively comprise over 40 percent of the Index of Industrial Production (IIP). The combined Index of Eight Core Industries stood at 127.0 in October, 2019, which declined by 5.8 percent as against the figure registered in October,2018.
In some of the sectors, the monthly output decline has simply been massive. Coal production, for instance, declined by 17.6 per cent in October,2019. Crude oil production came down by 5.1 per cent while the decline in the production of natural gas was slightly lower than 6 percent.
The production in steel was lower by a marginal 1.6 percent while cement production contracted by 7.7 percent. Electricity production too declined by a massive margin – by 12.4 percent. Only two sectors displayed positive growth trends- petroleum refinery production grew by a marginal 0.4 percent while fertilizers output went up by 11.8 per cent.