Industrial production in India declines 1.2% in February

Industrial production in India based on the general index of industrial production (IIP) hit a four-month low declining by 1.2 per cent in February, on the back of a slump in manufacturing activity and lower offtake of both capital goods and consumer goods, quick estimates released by the Central Statistics Office on Tuesday showed.

The previous low was recorded in October when the IIP contracted by 1.87 per cent.

Manufacturing output, which constitutes 75 per cent of India's industrial production, had contracted by 2 per cent in February. The sector had recorded a meagre growth of 0.6 per cent in February, 2016.

The index of industrial production (IIP) had recorded a growth of 1.99 per cent in February 2016.

For the first 11 months of the financial year ended February, industrial production growth was nearly flat at 0.4 per cent against 2.6 per cent a year ago.

For January, the Central Statistics Office has revised the IIP growth rate to 3.27 per cent from 2.74 per cent in the provisional data released last month.

Production in the mining, manufacturing and electricity sectors in February 2017 grew at 3.3 per cent, (-) 2.0 per cent and 0.3 per cent, respectively, compared to levels in February 2016. Cumulative growth in production in the three sectors during April-February 2016-17 stood at 1.6 per cent, (-) 0.3 per cent and 4.6 per cent, respectively.

Fifteen out of the 22 industry groups in the manufacturing sector have shown negative growth during February 2017 compared to the corresponding month of the previous year. The industry group 'tobacco products' has shown the highest negative growth of (-) 42.8 per cent, followed by 'food products and beverages' (-) 21.7 per cent and 'office, accounting and computing machinery' (-) 20.6 per cent.

On the other hand, the industry group 'electrical machinery and apparatus' has shown the highest growth of 17.4 per cent in February 2017, followed by 'Wearing apparel; dressing and dyeing of fur' 10.7 per cent and 'basic metals' 9.9 per cent.

Basic goods production increased by 2.4 per cent in February 2017 while capital goods production declined by 3.4 per cent and that of intermediate goods by (-) 0.2 per cent.

Production of consumer durables and consumer non-durables recorded growth rates of (-) 0.9 per cent and (-) 8.6 per cent, respectively, with the overall growth in consumer goods being (-) 5.6 per cent in February 2017.