India's IIP increase 5% in February

Industrial production for February 2015 grew at 5% YoY (vs. +2.8% in January 2015) - highest growth in the past nine months.

       

Core industries grew at a tepid pace of 1.4% YoY.

       

Capital goods' growth trend up, indicating improving investment in the economy.

The industrial production for February 2015 moved up, printing a growth of 5% YoY, compared to 2.8% YoY in January 2015. This is the highest growth recorded in the past 9 months. Core industries (constituting 38% of industrial output) grew at a tepid pace of 1.4% YoY during the month.

      

Industries constitute 45% of banking sector credit; growth in industrial production is a key positive for banks.

Industry-wise growth

Manufacturing, constituting 75% of the industrial production index, expanded 5.2% YoY, against 3.4% in the previous month. Mining grew at 2.5% YoY (January 2015: contraction of 2%), while electricity generation registered a 5.9% growth YoY (January 2015: 3.3%).

       

Monetary and fiscal policies are in easing mode; growth momentum is expected to continue.