India Industry February 2018

India

India: Industrial production growth moderates slightly in February

April 12, 2018

Industrial production growth eased to 7.1% in annual terms in February, down from January’s revised 7.4% increase (previously reported: +7.5% year-on-year) and coming in above market expectations of a 6.8% rise. The small moderation was driven by a drop in mining output and a deceleration in electricity generation growth, which were partially offset by an uptick in manufacturing production Manufacturing recorded an annual rate of expansion above 8.0% for a third consecutive month.

On a use-based classification, February’s mild slowdown was the result of softer production of consumer non-durable goods, which moderated from 11.0% growth in annual terms in January to 7.4% growth in February. Conversely, growth of capital goods output—a proxy for domestic fixed investment—accelerated rapidly in February to 20.0%, up from a revised 12.8% expansion in January (previously reported: +14.6% yoy.). Consumer durable production also ticked up in the month, while infrastructure output growth posted strong gains in February, underpinned by a pick-up in steel and cement production.

Despite the sequential slowdown, February’s performance was solid nonetheless and contributed to the upward trend industrial production has seen in recent months. Moreover, healthy industrial output supports expectations of the strong economic recovery many FocusEconomics panelists have penciled in for fiscal year 2018.

India Industrial Production Forecast


FocusEconomics panelists expect industrial production to increase 5.7% in fiscal year 2018, which is unchanged from last month’s forecast. For fiscal year 2019, the panel expects industrial output to expand 6.1%.


Author:, Economist

Sample Report

Looking for forecasts related to Industry in India? Download a sample report now.

Download

India Industry Chart


India Industry February 2018

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


India Economic News

  • India: Industrial production contracts at the sharpest pace since February 2013 in September

    November 11, 2019

    Industrial production fell 4.3% in September compared to the same month a year earlier, down from August’s revised 1.4% decrease (previously reported: -1.1% year-on-year). Most industrial sectors contributed to the slump in September, with output in the mining sector dropping the most, followed by that of the manufacturing sector and electricity sector, respectively.

    Read more

  • India: Private sector falls further into contraction in October

    November 5, 2019

    The composite Purchasing Managers’ Index (PMI) produced by IHS Markit dipped to 49.6 in October from 49.8 in September, leaving it further below the 50-threshold that separates contraction from expansion in the private sector. The services PMI increased to 49.2 in October, up from 48.7 in September, although still below the all-important 50-mark.

    Read more

  • India: Exports and imports both decrease in September

    October 15, 2019

    Merchandise exports declined for the second consecutive month in September, dropping 6.6% compared to the same month a year earlier and amounting to USD 26.0 billion (August: -6.0% year-on-year).

    Read more

  • India: Consumer price inflation accelerates in September

    October 14, 2019

    In September, consumer prices rose 0.55% compared to the previous month, edging down from the 0.56% increase in August.

    Read more

  • India: Industrial production sinks in August

    October 11, 2019

    Industrial production fell 1.1% in year-on-year terms in August, contrasting July’s revised 4.6% increase (previously reported: +4.3% year-on-year). Most industrial sectors contributed to the slump in August, with output in the manufacturing sector dropping the most, followed by output in the electricity sector.

    Read more

More news

Search form