India: Industrial production virtually flat in July
September 11, 2012
In July, industrial production increased 0.1% over the same month last year, according to the so-called quick estimate for the index of industrial production (IIP). The reading contrasted the 1.8% drop recorded in June but undershot market expectations of a 0.5% rise. The monthly result primarily reflected how a decline in both the manufacturing and the mining sectors was more than offset by an expansion in electricity output. On a use-based classification, the monthly figure was mostly the result of an increase in basic and consumer goods, which more than compensated for a decline in both intermediate and capital goods production. As a result of the weak growth in July, the trend continues to point downwards, with annual average growth in industrial production falling from 1.3% in June to 1.0%. CF Industry. The Central Bank anticipates GDP growth reaching 7.3% this fiscal year, which will end in March 2013, while the government sees the economy expanding 7.6%.