India Industry February 2017

India

India: Industrial production drops in February

April 12, 2017

Industrial production in India contracted in February, falling 1.2% compared to the same month of 2016. The result contrasted January’s revised 3.3% increase (previously reported +2.7% year-on-year) and marked the worst result since October.

February’s result was driven chiefly by a fall in manufacturing output, which contracted 2.0% annually. In addition, mining growth slowed from 5.3% in January to 3.3% and electricity output also deteriorated growing a meagre 0.3%.

On a use-based classification, the production of capital goods dropped in February, decreasing 3.4%. Meanwhile, the contraction in consumer goods intensified and output of basic goods grew at a slower pace.

Annual average growth in industrial production fell to 0.5% from January’s 0.7%.

FocusEconomics panelists expect industrial production to increase 5.5% in fiscal year 2017, which is unchanged from last month’s forecast. For fiscal year 2018, the panel expects industrial output to expand 6.6%.


Author: Angela Bouzanis, Senior Economist

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India Industry February 2017

Note: Year-on-year and annual average variation of industrial production index in %.
Source: Ministry of Statistics and Programme Implementation (MOSPI) and FocusEconomics calculations.


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