In March, industrial production contracted 3.5% over the same month last year, according to the so-called quick estimate for the index of industrial production (IIP). The reading contrasted both the 4.1% increase recorded in February as well as market expectations of a 1.7% rise. The contraction in March was primarily driven by a sharp decline in the manufacturing sector, which accounts for over three quarters of total industrial output. On a use-based classification, the monthly figure mainly reflected plummeting capital goods production as well as a fall in intermediate goods output. As a result of the monthly contraction, the trend in industrial production continues to point downwards, with annual average growth reaching 2.8% in the full fiscal year 2011/12, which is only a fraction of the 8.2% expansion recorded in the previous fiscal year. The government expects GDP to grow 7.6% this fiscal year, which will end on March 2013.
Industrial production contracts unexpectedly
May 11, 2012
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India Industry Chart
Note: Year-on-year and annual average variation of industrial production index in %.
Source: Ministry of Statistics and Programme Implementation (MOSPI) and FocusEconomics calculations.
India Economic News
October 17, 2016
Recently-released data related to India’s external sector showed that the trade deficit totaled USD 8.3 billion in September, which was a smaller shortfall than the USD 10.2 billion gap recorded in September 2015 (August 2016: USD 7.7 billion deficit).
October 15, 2016
In September, consumer prices fell 0.23% from the previous month, which followed August’s flat growth.
October 12, 2016
The fall in industrial production moderated in August, after recording the largest contraction since November 2015 in July.
October 5, 2016
Activity in India’s manufacturing sector lost steam in September.
October 4, 2016
The newly facelifted Reserve Bank of India (RBI) decided to ease monetary policy at a scheduled meeting on 4 October, cutting the repurchase rate from 6.50% to 6.25%—an over five-year low.