Mumbai, May 11, 2018: Growth in the index of industrial production (IIP) slowed to 4.4% on-year in March 2018, after having grown over 7% plus average, in the previous four months.
Core sectors have been consistently losing steam. Growth in the economy’s eight core sectors, which make up about 40% of total industrial production, slowed to 4.1% in March, from 5.3% in February and 6.1% in January.
Growth in the non-core sectors too slipped during the month. Separately, trade data reported a slowdown in non-oil exports in March. That said, an unfavorable base effect was also behind the slowdown in IIP growth in March. Overall, IIP growth for fiscal 2018 as a whole was stagnant at 4.4% (same as in fiscal 2017).
While manufacturing sector displayed some improvement (growing by 4.4% over 3.3% in fiscal 2017), the overall stagnancy was on account of a subdued performance of the electricity and mining sectors.