India’s Feb IIP rises 15.1% yoy

India’s industrial output, as measured by the index of industrial production (IIP), grew by 15.1% as against an annual gain of 16.7% in January, and 17.6% in December. It was also lower than the consensus estimate of around 16%. Industrial production grew by a mere 0.2% in the same month last year. Manufacturing output rose by 16% as against a mere 0.2% in February 2009, while Mining production was at 12.2% versus (-)0.2% in the year-ago period. Electricity sector output expanded by 6.7% compared to just 0.7% in the same month a year ago. During April-February 2009-10, the industrial output grew by 10.1% versus 3% in the corresponding period of the last fiscal year.

Consumer Durables production expanded by 29.9% in February 2010 as against 6% in the same period in 2009. Consumer Non-durables output rose by 2.3% versus (-)3.4% in the same month of last year. Consumer Goods output grew by 8.9% compared to (-)1.3% in February 2009. Output in Capital Goods grew by 44.4% in February 2010 as against 11.8% for the same month of 2009. The growth rate in Basic Goods category stood at 8.4% versus a contraction of 0.1% in the year-ago period. Intermediate Goods' output rose by 15.6% in the month under review versus (-)3% in the year-ago period.

As many as 14 out of the 17 industry groups showed a positive growth during February 2010 compared to the corresponding month of the previous year. ‘Metal Products and Parts, except Machinery and Equipment’ clocked the highest growth of 57.0%, followed by 40.4% in ‘Machinery and Equipment other than Transport Equipment’ and 36.4% in ‘Transport Equipment and Parts’. On the other hand, ‘Jute and Other Vegetable Fibre Textiles (except cotton)’ showed a negative growth of 28.7% followed by 6.0% in ‘Wool, Silk and Man-made Fibre Textiles’ and 1.0% in ‘Other Manufacturing Industries’.