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The output of India’s core infrastructure industries contracted 5.2 percent YoY in September compared to a revised 0.1 percent growth in August 2019, reflecting weakness industrial production and domestic demand. The index of core industries that includes eight industries was largely dragged down by coal and petroleum refinery products.


The core index that accounts more than 40 percent weight in Index of Industrial Production (IIP) suggests that the contraction could have a bearing on upcoming IIP figure for September. The significant contraction in the core industries adds to the concerns amid slow economic growth.

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