India's factory output continues to ease

Index for Industrial Production (IIP) was recorded at 2.1% in the month of March as against a negative 0.5% in the same month of last year. This comes to an increase of 2.6% year-on-year. 

However, IIP in the month of February 2015 stood at 5%. The factory output figure for the month of March was lowest sequentially since November when it stood at 3.9%. 

Thirteen out of twenty-two industries in the manufacturing sector have shown positive growth during the month of March this year as compared to last year.

Furniture and manufacturing company has shown the highest positive growth of 34%. 

source: tradingeconomics.com

 

There has also been an increase in the general index of mining, manufacturing and electricity sectors. It has increased by 0.4% in mining industry and there has been an increase in the GI in the engineering sector by 3.5%.

On the contrary 'Radio, TV and communication equipment and apparatus' industry has shown the highest negative growth of (-)62.8%. Tobacco products industry has also shown a fall in their general index which stands at (-)12.1%.

The growth rates in Basic goods, Capital goods and Intermediate goods are 2.3%, 7.6% and 1.9% respectively in the month of March this year.

Woolen carpets, air conditioners, gems and jewels, steel, pens and vitamins have shown increase in their GI whereas tractors, cements and cotton seed oil are among the highest negative contributors.