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India: Industrial production eases in January

March 12, 2015

In January, industrial production expanded 2.6% compared to the same month last year. The reading was below December’s revised 3.2% growth (previously reported: +1.7% year-on-year), but overshot the 0.7% expansion the market had expected.

The slowdown in January was broad-based. Manufacturing production rose 3.3% over the same month last year, which was below December’s 3.8% rise. Mining contracted 2.8% in January, which followed December’s 2.1% fall. In addition, production of electricity slowed.

On a use-based classification, the figure was driven by a deterioration in the production of consumer goods, basic goods and intermediate goods. In contrast, the production of capital goods accelerated in January.

Despite the slowdown, the trend improved. Annual average growth in industrial production rose from 1.7% in December to 1.9% in January.

FocusEconomics panelists expect industrial production to increase 6.1% in fiscal year 2015/2016, which is down 0.4 percentage points from last month’s forecast. For fiscal year 2016/2017, the panel expects industrial output to expand 7.1%.


Author: Angela Bouzanis, Senior Economist

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India Industry January 2015

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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