India’s Industrial Production (IIP) fell down to a five-month low of 4.4 percent in March, due to capital goods and low mining activities. For last four months, the production was 7 percent. Even in February, India’s industrial output grew at 7 percent. The previous low was witnessed in October 2017, when the IIP fell down at 1.8 percent.
Economists surveyed by Reuters had forecast 5.9 percent growth in output compared with a downward revised 7.0 percent annual increase in February.
The slowdown in factory output can be attributed to lower production in the manufacturing sector, which constitutes 77 percent of the index.
The mining Sector also witnessed a falling graph, with output slipping down to 2.8 percent from 10.1 percent in March 2017. Similarly, power generation too decelerated to 5.9 percent as against 6.2 percent in March 2017. Capital goods output also slowed down by 1.8 percent during March compared to a growth of 9.4 percent last year. The output of the Infrastructure sector rose at moderated pace of 8.8 percent in March 2018, while the output of primary goods rose at slower pace of 2.9 percent and intermediate goods at 2.1 percent. Consumer durables output showed an increase of 2.9 percent as against a decline of 0.6 percent in March 2017.