Industrial Production Growth Slumps Sharply Under Modi Government

New Delhi: The industrial production growth rate in India has declined sharply from 8.8 per cent to 6.7 per cent in a single month, raising concerns over the country’s industrial performance. The central government’s flawed industrial policies and its favourable approach towards corporate giants are pushing the country backwards.

Growth in the manufacturing sector fell from 9.5 per cent to 7.3 per cent.

The setback in the mining sector was a major reason for the slowdown in industrial growth. The mining and quarrying sector, which recorded 1.6 per cent growth in June, contracted by 0.9 per cent in July. Growth in the electricity and cooking gas supply sector also declined from 11.3 per cent to 8.7 per cent. Pharmaceutical production fell by 5.6 per cent, while chemical production declined by 2.7 per cent.

Experts view the stagnation in industrial growth as a strong indication of the serious challenges the country is likely to face. The current crisis is also seen as a consequence of the wrong policies pursued by the BJP government over the past few years, with greater emphasis on promoting corporates instead of protecting and strengthening small and medium-sized industries.

The impact of the crises triggered by conflicts in West Asia is also reflected in the growth figures. The uncertainty created by the conflicts and concerns among producers have further weakened the country’s overall industrial growth.

Since February 28, when the United States launched its war against Iran, people in several countries have been struggling with inflation and rising prices. The decline in industrial production is a major setback for Prime Minister Narendra Modi, who continued to stand by US President Donald Trump amid the crisis.