New Delhi: Dashing hopes of recovery, growth in industrial production plunged to 0.1% in March due to poor performance of manufacturing and mining sectors coupled with sharp decline in output of capital goods.
Factory output measured in terms of Index of Industrial Production (IIP) was 2.5% in March, 2015, as per data released by Central Statistics Office (CSO). The index had registered a growth of about 2% in February, 2016.
For the entire 2015-16 fiscal, the factory output grew at 2.4%, down from 2.8% in the previous fiscal.
The manufacturing sector, which accounts for over 75% of the index, declined by 1.2% in March against a growth of 2.7% in same month a year ago. The sector has not done well in 2015-16 as it grew at meager rate of 2% compared to 2.3% in previous year.
Mining sector output too contracted by 0.1% in March compared to a growth of 1.2 a year ago. In 2015-16, the sector grew at 2.2% up from 1.1% in previous fiscal.
However, the power sector performed well recording a robust growth of 11.3% in March up from 2 per cent year ago. During the financial year as a whole, power generation recorded a growth of 5.6%, down from 8.4% in 2014-15.
Capital goods segment, which is a barometer of investment, contracted by 15.4% in March as against a growth of 9.1% year ago. During 2014-15, the output of these goods also declined by 2.9% compared to a growth of 6.3% in previous fiscal.
Overall, 12 of the 22 industry groups in manufacturing sector showed positive growth in March 2016 as compared to a year ago.
The industry group Radio, TV and communication equipment & apparatus has shown the highest positive growth of 36.5%, followed by 19.8 percent in Tobacco products and 16.9% in Wearing apparel; dressing and dyeing of fur.
On the other hand, the industry group Electrical machinery & apparatus n.e.c. has shown the highest negative growth of (-)36.2%, followed by (-)15% in Food products and beverages and (-)9.9 percent in Publishing, printing & reproduction of recorded media.
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