New Delhi : The Index of Industrial Production (IIP) for the month of April came in at a disappointing (-)0.8%. This implies that industrial production has contracted 0.80 per cent in April as against a growth of 3 per cent a year ago. Disappointing data may add to the clamour for rate cut by the Reserve Bank of India. Manufacturing sector which constitutes over 75% of the index, contracted by 3.1% in April this year compared to a growth of 3.9% in same month last year. Similarly the capital goods output, which is a barometer of investment, declined sharply by 24.9% in April compared to a growth of 5.5% during the same month last year.
Showing lower demand, overall consumer goods output dipped by 1.2% in month under review as against a growth of 2.8% year ago. The consumer non-durable segment showed decline in output by 9.7% compared to a growth of 3.7% year ago.
However, the consumer durable sector showed an uptrend by recording a growth of 11.8%, up from 1.3% a year ago. On the positive side, power generation recorded a growth of 14.6% as against a marginally decline of 0.5% a year ago. Mining sector, showed some improvement recording a growth of 1.4% as against a contraction of 0.6% a year ago. Overall, 9 of the 22 industry groups in manufacturing sector showed negative growth in April 2016 as compared to year ago period.