India: Industrial production bounces back
March 12, 2012
In January, industrial production expanded 6.8% over the same month last year, according to the so-called quick estimate for the index of industrial production (IIP). The reading exceeded both the revised 2.5% increase recorded in December (previously reported: +1.8% year-on-year) as well as market expectations. The acceleration was primarily driven by a sharp rebound in manufacturing output, which accounts for over three quarters of industrial production. On a use-based classification, the monthly figure mainly reflected faster growth in consumer goods production. Despite the stronger monthly expansion, the trend in industrial production continues to point downwards, with annual average growth inching down from 4.8% in December to 4.7% in January. The government expects economic growth to reach 6.9% this current fiscal year, which will end in March.