India: Industrial production growth eases in April

Industrial output in India growth slipped to 3.1% at the start of FY 2017, according to the recently revised industrial production index. April’s result followed a stronger revised 3.8% expansion in March (previously reported: +2.7%). The Ministry of Statistics and Programme Implementation (MOSPI) had changed its methodology and revised the base year of calculation from fiscal year 2004 to fiscal year 2011 in March.

A sharp slowdown in mining output and slower growth of electricity production drove the result, while manufacturing production expanded at a slightly faster pace than the previous month. On a use-based classification, the production of consumer durables and capital goods shrunk in April, while output of primary and intermediate goods increased.

Annual average growth in industrial production fell from 5.2% in March to 4.9% in April.

FocusEconomics panelists expect industrial production to increase 6.0% in fiscal year 2017, which is unchanged from last month’s forecast. For fiscal year 2018, the panel expects industrial output to expand 6.8%.