Why is it in the news ?
- India’s industrial output shrank at its fastest rate in more than six years in August to 1.1%.
- It reflects the impact of an economic slowdown.
More in the news
- The manufacturing sector, which accounts for 78 per cent of the index, saw output turn negative for the first time this fiscal year.
- The capital goods segment, a crucial sector that signifies investment, contracted 21 per cent.
- The production of electronic goods also turned negative, contracting by 3 per cent in August.
- Policy cut:
(1) Subdued inflation and an economic slowdown have prompted the Reserve Bank of India (RBI) to cut interest rates by a total of 135 basis points this year.
(2) There was a 25-basis-point cut last week.
Source
The Hindu.