India: Industrial production comes to a virtual halt
June 11, 2012
In April, industrial production expanded 0.1% over the same month last year, according to the so-called quick estimate for the index of industrial production (IIP). The reading contrasted the revised 3.2% decline recorded in March (previously reported: -3.5% year-on-year) but came in below market expectations of a 1.0% rise. The April figure primarily reflected near zero growth in the manufacturing sector, which accounts for over three quarters of total industrial output. On a use-based classification, the monthly reading mainly reflected how an increase in basic goods and consumer goods production was almost entirely offset by declining output in capital and intermediate goods. As a result of the weak monthly result, the trend continues to point downwards, with annual average growth in industrial production falling from 3.0% in March to 2.6%. The government expects GDP to grow 7.6% this fiscal year, which will end on March 2013.