India: Industrial production accelerates
April 12, 2012
In February, industrial production expanded 4.1% over the same month last year, according to the so-called quick estimate for the index of industrial production (IIP). The reading exceeded both the revised 1.1% increase recorded in November (previously reported: +6.8% year-on-year) as well as market expectations. According to the statistical office, the sharp revision to the January figure was caused by an error in the data regarding sugar production. The acceleration over January was broad-based, with all subcategories rebounding strongly over the previous month. On a use-based classification, the monthly figure mainly reflected strong growth in both basic goods and capital goods production. Despite the stronger monthly expansion, the trend in industrial production continues to point downwards, with annual average growth falling from 4.2% in January to 4.0% in February. The Central Bank anticipates GDP growth reaching 7.3% this fiscal year, which will end on March 2013, while the government sees the economy expanding 7.6%.