Major setback to economy under Modi: Core sector output falls to -5.2%, worst in 14 years

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New Delhi, Nov 1: As PM Narendra Modi is keen on patting his back for the achievements of his government in abrogating Article370, some worst news relating to Indian economy is bringing bad news to his ears as the core infrastructure industries’ output—measuring a basket of eight sectors accounting for two-fifth of India’s factory output—contracted to the lowest in at least 14 years, pointing to a deepening industrial slowdown.

The gauge contracted by 5.2% in September from a growth of 4.3% in the year- ago period, according to data released by the commerce and industry ministry on Thursday.

Another rate cut in the December monetary policy review is likely.

Such a low growth in core sector industries has not been witnessed so far in either the 2011-12 base or the 2004-05 base series.

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