IIP declines 1.9% in February 2014

IIP recorded decline for six out of 11 months in FY2014 till February 2014

India's Index of industrial production (IIP) dipped 1.9% in February 2014, snapping 0.8% growth recorded in the previous month. IIP recorded decline for six out of 11 months in FY2014 till February 2014. The sharp decline in the output of manufacturing sector at 3.7% in February 2014, mainly led to dip in IIP during February 2014. Meanwhile, the output of mining sector rose 1.4%, while the electricity generation surged 11.5% in February 2014.

As per the used based classification, the output of basic goods advanced 3.9% in February 2014, with the increase in mining output and healthy growth in electricity generation. The output of intermediate goods also rose 4.2%, but that of capital goods and consumer goods plunged 17.4% and 4.5%, respectively in February 2014.

The decline in the output of consumer goods was driven by 9.3% plunge in consumer durable goods production recording fall for fifteenth straight month. However, the output of consumer non-durable goods also declined 1.2% in February 2014, snapping decline for last 13-months.

The IIP growth for the month of January 2014 has been revised upwards to 0.8% from 0.1% reported earlier, while the growth for the month of November 2013 has been retained unchanged at (-) 0.2% compared to first revision, while scaled up from (-) 0.6% at the provisional level.

In terms of industries, nine (09) out of the twenty-two (22) industry groups in the manufacturing sector have shown positive growth during the month of February 2014, as compared to the corresponding month of the previous year.

The industry group 'Radio, TV and communication equipment & apparatus' has shown the highest negative growth of (-) 34.1%, followed by (-) 24.6% in 'Electrical machinery & apparatus' and (-) 21.3% in 'Wearing apparel; dressing and dyeing of fur'.

On the other hand, the industry group 'Furniture; manufacturing' has shown the positive growth of 9.3%, followed by 9.1% in 'Textiles' and 6.1% in 'Coke, refined petroleum products & nuclear fuel'.

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