Factory output contraction slowed further in the month of June as the economy gradually began opening up.
The Index of Industrial Production contracted by 16.6 per cent in June compared to a 33.9 per cent contraction seen in the month of May when restrictions had started easing.
The slowing of contraction is in line with the core sector output that also showed signs of recovering as its contraction slowed too in the month of June. The eight core sector industries together form 40 per cent of the factory output index.
The overall factory output contracted by 35.9 per cent in the first quarter of the current fiscal paving the way for a contraction in GDP in the current fiscal. The RBI also estimated that the economy will contract this fiscal, the first in nearly 40 years.
