Its no longer 'India shining'. Industrial production fell into the negative zone for the first time in 15 years after recording a 12.2 per cent growth a year ago. Industrial output fell by 0.4 per cent in October.
The manufacturing sector fell by 1.2 per cent year-on-year giving the warning signals of an economic slowdown. Consumer goods fell 2.3 per cent year-on-year compared with a 7.6 per cent increase in the first half of the year.
The growth across industry sectors is likely to slow down further. If this trend continues for two quarters, India will officially be in a recession. However, former finance minister (and current home minister) P Chidambaram has said India is nowhere near recession.
Bad news continues. Indian industry is planning production cuts in the range of 10-50 per cent between October 2008 and March 2009.
The sectors which are likely to see production cuts include textiles, metal and metal products, machinery and equipment, leather as well as chemicals, points out a survey by Federation of Indian Chambers of Commerce and Industry (Ficci).
Sectors like textiles, metal and metal products, leather and jewellery could see job cuts in the range of 10-30 per cent.
The automobile sector has been on of the worst hit in the crisis. About 600 auto component manufacturing units in Jamshedpur have shut down operations, while more than 4,000 other units spread across the country are on the verge of closure.
Here's a look at the companies that have shutdown their plants or cut down production target in the wake of the worsening crisis.
Image: Many manufacturing units are shutting down their plants for a few days a week to cut production as demand drops. | Photograph: Rediff Archives
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