India: Industrial output growth accelerates in March
May 10, 2013
In March, industrial production expanded 2.5% over the same month last year, according to the so-called quick estimate for the index of industrial production (IIP). The reading represents a third consecutive increase in factory output and marked an acceleration over the revised 0.5% increase observed in February (previously reported: +0.6% year-on-year). In addition, the print exceeded market expectations of a 1.8% increase.
The monthly print benefited from a faster increase in manufacturing output - which accounts for over three quarters of industrial production - (March: +3.2% yoy; February: +1.9% yoy) and a rebound in electricity production (March: +3.5% yoy; February: -3.2% yoy).
As a result of the March increase, the trend improved, with annual average growth in industrial production rising from 0.6% in February to 1.1% in March.
FocusEconomics panellists expect industrial production to increase 4.6% in the fiscal year 2013/14, which is down 0.1 percentage points from last month's forecast. For the fiscal year 2014/15, the panel anticipates industrial output to expand 6.3%.
Author: Ricardo Aceves, Senior Economist