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%.