Mumbai: The growth in February industrial production (IIP) has come in at 4.1 per cent, which is an improvement over the January number. The January IIP number has been revised to 1.1 per cent from 6.8 per cent (provisional). The Central Statistical Organization revised January IIP figure after it spotted an error in sugar output numbers. Based on the January provisional numbers, a CNBC-TV18 poll had estimated February IIP growth flat at 6.7 per cent.
Manufacturing output, which constitutes nearly 76 per cent of total industrial production, declined to 4 per cent versus 7.5 per cent year-on-year. Mining sector growth, which has been been underperforming for a while, has come in at 2 per cent. Capital goods index at 10.6 per cent is an improvement month-on-month. Consumer non-durables growth in February stands at 5 per cent.
Core sector, which contributes almost 38 per cent to industrial production, grew by a sharp 6.8 per cent in February from a year earlier. Core sector comprises key infrastructure industries of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity.
Economists and market experts speaking to CNBC-TV18 said all indicators point towards a slow down that makes a case for repo rate cut in the Reserve Bank's monetary policy on April 17. This hope was refelected in bonds that rallied after the February numbers were released; consequently rupee fell marginally. The stock market barely reacted to the February industrial output numbers.
Sector-wise IIP data
- Manufacturing sector growth at 4 per cent Vs 7.5 per cent (YoY)
- Capital goods growth at 10.6 per cent Vs -5.7 per cent (YoY)
- Consumer non-durable goods growth at 5.1 per cent
- Mining sector growth at 2.1 per cent Vs 1.2 per cent (YoY)
- Electricity growth at 8 per cent
- Basic goods growth at 7.5 per cent Vs 5.5 per cent (YoY)
- Intermediate goods growth at -0.6 per cent vs 6.3 per cent (YoY)
- Consumer durable goods growth at -6.7 per cent vs 18.2 per cent (YoY)