Economic cheer: February IIP at 2% versus (-)1.5% in January

The Index of Industrial Production (IIP) for the month of February picked up at 2% versus a contraction of (-)1.5% in January. The General Index for the month of February 2016 stands at 184.6, which is 2% higher as compared to the level in the month of February 2015. The cumulative growth for the period April-February 2015-16 over the corresponding period of the previous year stands at 2.6%

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of February 2016 stand at 136.1, 194.1 and 181.9 respectively, with the corresponding growth rates of 5.0%, 0.7% and 9.6% as compared to February 2015.

While the capital goods output contracted at (-)9.8% versus 8.3% YoY, mining output rose 5% versus 1.6% YoY.

Meanwhile, according to Nikkei survey, India’s manufacturing growth rose to an eight-month high in March driven by strong rise in business orders, leading firms to scale up output. The seasonally-adjusted Nikkei India Manufacturing Purchasing Managers’ Index (PMI) — a composite single-figure indicator of manufacturing performance — was up from 51.1 in February to an eight-month high of 52.4.

The seasonally-adjusted Nikkei India Manufacturing Purchasing Managers’ Index (PMI) — a composite single-figure indicator of manufacturing performance — was up from 51.1 in February to an eight-month high of 52.4.

Also, the Reserve Bank of India’s industrial outlook survey suggests that business expectations for Q1 of 2016-17 continue to be positive.