IIP stands at -0.8%: Industrial growth contracts

The most awaited IIP (Index of Industrial Production) numbers were out on Friday late afternoon. Indian stock markets witnessed a marginal correction on Friday amid concerns over the IIP numbers. IIP was expected to remain negative for April in the wake of weak manufacturing activity, mining activity and drop in output of capital goods.

Accordingly, IIP for April 2016 came in at -0.8 per cent as against expectations of 0.86 per cent and against the March data where the IIP had fallen by 0.1 per cent. IIP has reported its first contraction in three months.

The general index for the month of April stands at 176.4. The cumulative growth for FY 2015-16 has come in at 2.4 per cent over the corresponding period of previous year. Out of the total manufacturing sector nearly 9 out of 22 industry groups witnessed a decline in growth.

The IIP for the manufacturing stands at 182.6 with a corresponding growth rate of -3.1 per cent. The manufacturing sector output was the lowest since December 2015. The IIP for mining however, has increased to 123.6 with 1.4 per cent corresponding growth. The Electricity IIP stands positive at 203 with 14.6 per cent growth as compared to April 2013.

Recently, both IIP and WPI numbers are up for revision with the new base year 2011-12 and are at the advanced stage. The revision is aimed at getting the numbers in line with the changing scenario and would be ready by the end of the current year.