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Industrial production barely grew and was at 0.6% in February from a year earlier, government data showed on Friday. Revised data for January showed production at factories, mines and utilities remained unchanged at 2.4%.
In the April-February period, industrial production expanded an annual 0.9%. Manufacturing, which constitutes about 76% of industrial production, grew 2.2% from a year earlier, the federal statistics office said.
Mining sector contracted by 8.1% in February 2013 over its level in February 2012 while the electricity sector contracted by 3.2% over its level in the corresponding period in the previous year.
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Expert Views
Soumya Kanti Ghosh | IIP numbers are a surprise
Notwithstanding the gloomy prognosis, IIP numbers for February 2013 are a surprise, with the Index registering a 0.6% growth. Even though the Index actually registered a decline in Y-O-Y growth in Feb from the earlier month (2.4% in Jane '13), the Y-O-Y growth in capital goods at use-based level at 9.5% was unexpected. At this rate, the weighted contribution of capital goods to IIP growth was the highest since, Feb 2012. Click here to read more
(The author is senior fellow, ICRIER)
Anis Chakravarty | Feb IIP positive but little to cheer
Riding on a low base, IIP data for February has come into positive territory. Given the contraction in core sector data for February, apprehensions were that IIP will also be negative. While better than expected capital goods performance has helped overall numbers remain positive, there is little to cheer. Click here to read more
(The writer is a senior director at Deloitte)
Ficci, CII Reactions
Expressing disappointment over poor industrial performance, India Inc today pressed for rate cut by the RBI to boost production and further revive the economic growth. Industry chamber Ficci said the RBI should intervene and cut interest rates.
"The IIP data for February calls for serious attention. It is important that RBI focuses on bringing down interest rates to stimulate investments which will further boost the demand," Ficci Secretary General Didar Singh said.
Besides, he said, there is a need to ensure speedy approvals for large projects, under the Cabinet Committee on Investments.
Sharing similar views, CII Director General Chandrajit Banerjee said, the industry body hopes the RBI will relook at its monetary policy in the light of latest IIP figures and reduce interest rates.
"We hope that the RBI would reduce repo rate (short-term lending rate) and Cash Reserve Ratio (CRR) by 50 basis points, each, while announcing the annual monetary policy on May 3," he said. Click here to read more
From Our Archives
January 2013 | After contracting for two months, IIP rises 2.4% in January
Backed by the manufacturing and electricity segments, industrial production increased 2.4% in January, against 0.49 per cent contraction in December 2012. However, economists were cautious in terming the data a sign of a recovery, as lead indicators suggested poor performances by the automobile and electricity segments in February. Click here for more
December 2012 | IIP shrinks again, by 2% in December
After contracting for the first time in 15 years in October, industrial production again crashed by two per cent in December against a growth rate of as much as 8 per cent a year ago despite a stimulus package announced by the government to boost sagging demand.Click here for more
November 2012 | IIP falls to -0.1%
The industrial output, as measured by the Index of Industrial Production (IIP) dipped from a robust 8.3% in October. The decline may prompt the Reserve Bank to consider rate cut in its quarterly review on January 29 to boost growth.
Click here for more
October 2012| IIP soars to 8.2%, beats estimates
Industrial production growth rate bounced back to a 16-month high of 8.2% in October on good performance of the manufacturing, power sector and higher output of capital as well as consumer goods, indicating sudden recovery in the economy. Click here for more
September 2012| Factory output slumps to 1.9% y-o-y
Continuing its dismal performance, industrial growth fell further to 1.9% in September, mainly due to poor output from the manufacturing sector. Click here for more
