India covid-19 economy crisis isolate India

As demand falls, Indian factories’ hum grows faint

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Data released by the Reserve Bank of India (RBI) suggests that capacity utilization of manufacturing companies in October-December 2019 was at its lowest since the bank began tracking this metric in 2008-09.

Mint takes a look at what this means in the broader economic context. What is the level of capacity utilization? The capacity utilization of 701 manufacturing companies for October-December 2019 was 68.6%.

This basically means that slightly less than one-third of the capacity of these companies is lying unused. For June-September 2019 the figure was 69.1%.

These are the lowest two levels of capacity utilization since RBI started measuring this metric from April-June 2008 onwards.

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