Industrial output growth drops to 20-month low of 0.1% in February; Retail inflation at 2.86% in March

India's industrial output growth stagnated in the month of February at 0.1 per cent on the backdrop of a slowdown in the manufacturing sector.

India's industrial output growth drops to 20-month low of 0.1 pc in February, Retail inflation at 2.86 pc in March
The eight core sector industries form nearly 40 per cent of the index of industrial production. (Image: Getty)
By: ABP News Bureau
Updated: 12 Apr 2019 07:04 PM
HIGHLIGHTS
  • Industrial output growth stagnated in the month of February at 0.1 per cent
  • This was on the backdrop of a slowdown in the manufacturing sector
  • Capital goods output declined by 8.8 per cent in March
New Delhi: India's industrial output growth stagnated in the month of February at 0.1 per cent on the backdrop of a slowdown in the manufacturing sector hinting towards a weak economic momentum in the country. This is reportedly the lowest growth rate in the past 20-months. As the data released by the government, Index of Industrial Production witnessed a hike of just mere 0.1 per cent in the month of February, compared to a growth of 1.7 per cent in January 2019 and 6.9 per cent in the same month last year. Data released by the Central Statistics Office (CSP) also highlighted that during April-February 2018-19, industrial output grew at 4 per cent as against 4.3 per cent in the same period of the previous fiscal. However, the retail inflation ticked up to 2.86 per cent in March as consumers spent more to buy food items and fuel. According to government data, the consumer price index (CPI)-based retail inflation was at 2.57 per cent in February this year. On a yearly basis, it was 4.28 per cent in March 2018.

"The quick estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of February 2019 stands at 127.5, which is 0.1 per cent higher as compared to the level in the month of February 2018," news agency ANI quoted an official statement released by the Ministry of Statistics and Programme Implementation.


Cumulative growth for the period April to February 2018-19 over the corresponding period of the previous year stands at 4 per cent. "Growth rates in February 2019 over February 2018 are 1.2 per cent in primary goods, minus 8.8 per cent in capital goods and minus 4.9 per cent in intermediate goods," the official statement added further. The eight core sector industries form nearly 40 per cent of the index of industrial production.

Meanwhile, IIP growth for November 2018 was revised downwards to 0.2 per cent from 0.3 per cent released earlier. The previous low in IIP growth was recorded in June 2017, when factory output contracted 0.3 per cent. The previous low in IIP growth was recorded in June 2017, when factory output contracted 0.3 per cent. The manufacturing sector, which constitutes 77.63 per cent of the IIP, contracted by 0.3 per cent in February as compared to 8.4 per cent expansion a year ago.

Capital goods output declined by 8.8 per cent in the month under review as against 16.6 per cent growth in February 2018. Power sector growth slowed to 1.2 per cent in February as compared to 4.5 per cent a year ago. Mining sector output grew 2 per cent in the month compared to a contraction of 0.4 per cent earlier.  Consumer durables and consumer non-durables recorded growth of 1.2 per cent and 4.3 per cent respectively.

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