India's February Factory Output Down by 1.2 percent
India's factory output dipped by 1.2 percent in February, official data showed on Wednesday.
In this file photo, workers assemble cars at a plant of Honda Siel Cars India Ltd. on the outskirts of New Delhi. (Photo: Reuters)
New Delhi: Industrial output slipped to 4-month low, contracting 1.2 percent in February, mainly on account on decline in the manufacturing sector and lower offtake of capital as well as consumer goods.
The Index of Industrial Production (IIP) had registered a growth of 1.99 percent in February 2016.
For the 11 month period to February of the last financial year, IIP growth was nearly flat at 0.4 per cent as against 2.6 percent a year ago.
For January, the Central Statistics Office has revised the IIP growth rate to 3.27 percent from 2.74 percent in the provisional data released last month.
The previous low was recorded in October when the IIP contracted by 1.87 percent. Thereafter, it shot up to 5.59 percent in November.
The decline in the IIP in February is mainly on account of 2 per cent contraction in manufacturing sector, which constitutes over 75 percent of the index. The sector had recorded a meagre growth of 0.6 percent in February, 2016.
The capital goods output declined by 3.4 percent in February over a contraction of 9.3 percent last year. Similarly, the overall consumer goods production declined by 5.6 percent in the month compared to a growth of 0.6 percent.
The non-durable consumer goods output shrank by 8.6 percent in the month over a contraction of 4.9 percent year ago. In the consumer-durable segment, the output dipped by 0.9 percent in February against a growth of 10.4 percent in same month last year.
Overall, 15 out of 22 industry groups in the manufacturing sector have shown negative growth in February.
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