February Industrial output expands to 4.5% from 2% month-on-month

New Delhi: Industrial output in February grew at 4.5 per cent as against a 0.2 per cent a year earlier, according to data released by the government on Thursday (April 9). Notably, the growth was 2 per cent in the previous month. 

The official statement said, "The quick estimates of Index of Industrial Production (IIP) with base 2011-12 for February stands at 133.3, which is 4.5 per cent higher as compared to the level in February 2019." The cumulative growth for the period April-February 2019-20 over the corresponding period of the previous year stands at 0.9 per cent, it said.

The numbers come amid uncertainty in the global economy with hundreds of countries struggling to deal with the impact of coronavirus. 

According to a data by the National Statistical Office (NSO), the manufacturing sector output grew at a rate of 3.2 per cent in February compared to a contraction of 0.3 per cent in the same month a year ago.

Electricity generation increased by 8.1 per cent as against a growth of 1.3 per cent in February 2019. Mining sector output surged by 10 per cent compared to a growth of 2.2 per cent earlier.

The IIP growth during April-February period of the last fiscal decelerated to 0.9 per cent from 4 per cent expansion in the same period of 2018-19.

The data for February showed that production of capital goods, a barometer of investment, shrunk by 9.7 per cent as compared to a contraction of 9.3 per cent in the corresponding month of the previous year.

As per use-based classification, primary good registered a growth of 7.4 per cent, intermediate goods 22.4 per cent, and infrastructure/construction goods 0.1 per cent in February 2020 as against the same period a year ago.

The consumer durables output fell 6.4 per cent, while non-durables remained flat.

In terms of industries, 13 out of 23 industry groups in the manufacturing sector have shown positive growth in February 2020.

The industry group 'Manufacture of basic metals' has shown the highest positive growth of 18.2 per cent followed by 8.0 per cent in 'Manufacture of chemicals and chemical products' and in 'Manufacture of other non-metallic mineral products', as per the data.

On the other hand, the industry group 'Manufacture of motor vehicles, trailers and semi-trailers' has shown the highest negative growth of (-) 15.6 per cent followed by (-) 14.8 per cent in ?Manufacture of computer, electronic and optical products', and (-) 9.9 per cent in Manufacture of fabricated metal products, except machinery and equipment, the statement added.