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Industrial production in the country shrank 10.4 per cent in July, marking a fourth straight month of decline, government data showed on Friday.
That was better than economists' estimates, and also better than a contraction of 16.6 per cent in the previous month. Economists in a poll by news agency Reuters had expected the factory output to plunge 11.5 per cent in July.Industrial production - or factory output - is gauged by the Index of Industrial Production (IIP), which takes into account activity recorded in sectors such as mining, manufacturing and electricity.In manufacturing, which has the maximum weightage of 11.14 per cent among sectors, industrial output fell 11.1 per cent in July, the data showed. Similarly, production in mining slumped 13.0 per cent, and dropped 2.5 per cent in power.Friday's data was in line with the government's view that the country's economy is likely to register a "V-shaped" recovery, with an improvement in performance in the coming quarters, indicated by a pickup in rail freight, power consumption and tax collections.Though the country's factory production remains in a contractionary mode, its severity is decreasing."Continuous moderation in contraction shows that economic recovery has begun, although local lockdowns and limited fiscal and monetary support hinder a fast recovery," Barclays said in a note.Earlier, separate data showed the country's output of eight core sectors - also known as infrastructure output - declined nearly 10 per cent compared to the corresponding period a year ago.The production of eight core sectors accounts for about 40 per cent of total industrial production.
