India’s industrial output falls 1.2 percent in February (Lead)

April 9th, 2009 - 7:11 pm ICT by IANS  

New Delhi, April 9 (IANS) India’s industrial output fell 1.2 percent in February against a growth of 9.5 percent in the like month of last fiscal, while the provisional drop reported for January has been revised now to a marginal growth of 0.39 percent.
As per data on index for industrial production (IIP) released Thursday, manufacturing output, which accounts for the bulk of the weight in the overall index, declined 1.4 percent in February, against 9.6 percent growth in the like month of last year.

While mining output also fell 1.6 percent, against 8 percent growth in February 2008, that for electricity increased marginally by 0.7 percent compared with a 9.8-percent growth during the period under review, the official statistics showed.

Cumulatively, the general index expanded 2.8 percent during the first 11 months of 2008-09, as against 8.8 percent in the same period of last year. Industrial output was up 8.1 percent in 2007-08 and 11.6 percent in the year before.

Meanwhile, the research arm of global credit rating agency Moody’s said India’s industrial outlook would remain bleak until the export sector gained.

“India’s industrial outlook will remain dire until there are signs of improvement in export prospects,” Sherman Chan, an economist with Moody’s said in a statement.

“It’s almost impossible for local manufacturers to maintain their previous production levels given the slump in external orders. Exports are unlikely to recover any time soon, as major markets such as the US and Europe are still in bad shape,” he added.

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