The Index of Industrial Production (IIP), which captures the activity in industrial sector of the Indian economy, declined 1.9 per cent in February over the year-ago period, according to an official estimate released in Friday. Separate estimates had projected a marginal increase for the month.
This was led by a 3.7 per cent decline in manufacturing sector even as electricity generation rose 11.5 per cent and the mining sector clocked 1.4 per cent growth during the month.
For 11 months of the last financial year ended in March 31, 2014 (April-February 2013-14) industrial production declined 0.1 per cent, over the corresponding period of the previous year. Again, electricity generation marked a growth (6.2 per cent) for the 11-month period while mining and manufacturing sectors declined 1.1 per cent and 0.7 per cent, respectively.
In terms of industries, 13 of the 22 industry groups in the manufacturing sector showed negative growth during February 2014 compared with the corresponding month of the previous year. The industry group ‘radio, TV and communication equipment & apparatus’ recorded the highest negative growth of 34.1 per cent, followed by a 24.6 per cent decline in ‘electrical machinery & apparatus’ and a 21.3 per cent drop in production of ‘wearing apparel; dressing and dyeing of fur’ as categories.
On the other hand, the industry group ‘furniture manufacturing’ exhibited positive growth of 9.3 per cent, followed by a 9.1 per cent rise in textiles as a whole and a 6.1 per cent growth in coke, refined petroleum products & nuclear fuel.
As per use-based classification, the basic goods category rose 3.9 per cent and intermediate goods sported a 4.2 per cent rise but capital goods, seen as a barometer of future industrial activity, declined 17.4 per cent during February.
The consumer durables and consumer non-durables recorded growth of (-) 9.3 per cent and (-) 1.2 per cent, respectively, with the overall growth in consumer goods being (-) 4.5 per cent.
On the flip side, the indices for January 2014 underwent the first revision. Industrial output for January, which was earlier pegged at 0.1 per cent has been revised upwards to 0.8 per cent.
(Edited by Joby Puthuparampil Johnson)