India’s industrial output shrinks 1.9% in February
India's industrial sector suffered a contraction of around 2 per cent in February, dampening down hopes of economic revival and underlining the need for the more government measures to boost the economic activity.
The Index of Industrial Production (IIP), a measure of industrial output, slipped 1.9 per cent year-on-year in the month of February, against a growth of 0.8 per cent in January this year.
Manufacturing activity contracted 3.7 per cent year-on-year in the month under review. However, electricity output and mining production jumped 11.5 per cent and 1.4 per cent, respectively.
In terms of industries, a total of thirteen out of the 22 industry groups in the manufacturing sector of the economy suffered negative growth in the month under review.
As per data released by the Central Statistics Office (CSO), factory output in the first 11 months of the financial year ended March 31 stands at just 0.1 per cent.
FICCI Director General Arbind Prasad said, "Such a steep fall in manufacturing disproves that growth has bottomed out. Both consumer demand and investment conditions seem to be weakening thereby further dampening the outlook for manufacturing."
Mr. Prasad added that the government should implement some bold reforms to revive the manufacturing activity. He suggested that focusing on big ticket projects in the short-run would help revive growth.