Factory output growth slips in March, poor performance of mfg sector: IIP data

New Delhi, May 13 (KNN) The factory output growth in the country declined to 2.7 per cent in March. One of the prime reasons for the decline is the poor performance of the manufacturing sector as the new data from the Index of Industrial Production suggests.

Talking to press, T.C.A Ananth, Chief Statistician of India said that The IIP data is now being calculated with a revised base year of 2011-2012 to make the comparison more relevant.

The IIP growth in March 2016 was 5.5 per cent. For 2016-17, factory output grew by 5 per cent as against 2.4 per cent in the previous year.

As per the data based on the new base year, the manufacturing sector output slowed to 1.2 per cent in March, from 5 per cent of March in the previous year.

Also, the electricity generation also saw a declining graph. This year it was 6.2 per cent, whereas it stood to 11.9 per cent in the previous fiscal year. However the mining sector saw an increase, as opposed to the growth of 4.7 per cent in the previous year, this year the sector expanded by 9.7 per cent.

The new IIP series takes into account only the organized sector. This includes 809 items in the manufacturing sector. Also in the list of items, 149 new products such as cement clinkers, medical accessories, surgical accessories, refined palm oils, steroids are added.  (With Inputs from PIB)

(KNN/ DA)