India's industrial growth shrunk for the first time in 22 months by 0.1 percent in August compared with 4.7 percent in the previous month owing to an unfavourable base, according to data released by the government on October 11.

Industrial growth had expanded 10.9 percent in August 2023.

India’s core sector output, which accounts for 40 percent of the weight in the index of industrial production, contracted in August by 1.8 percent compared with 6.1 percent growth in the previous month.

August month marked the first contraction in the growth of infrastructure industries in nearly four years.

HSBC data had shown that manufacturing activity had also slumped to a three-month low of 57.5 in August due to tepid export demand.

India’s merchandise exports shrunk by 9.4 percent in August, pushing the trade deficit to a 10-month high.