India: Industrial production growth accelerates in March
May 12, 2017
A revamped industrial production index showed that industrial output accelerated in March with annual growth rising from February’s 1.9% to 2.7%. The historical data series was revised along with March’s data release as the Ministry of Statistics and Programme Implementation (MOSPI) changed its methodology and revised the base year of calculation from fiscal year 2004 to fiscal year 2011. The updated methodology resulted in some large upward revisions to historical data and annual average growth in February was revised from 0.5% under the old methodology to 5.3%.
March’s result was driven by higher growth in mining output as well as electricity production. Meanwhile, manufacturing growth eased slightly compared to the previous month.
On a use-based classification, the production of basic goods surged in March and was largely behind the overall gains in the index. In addition, the contractions in capital goods and non-durable consumer goods moderated.
Annual average growth in industrial production fell to 5.1% in March.