India's industrial output fell in February, with growth dropping to a six-month low of 2.9 percent from 5.2 percent the month before, according to reports.

The performance of the core sector, which accounts for 40 percent of the index of industrial production (IIP), is reflected in the trend.

Data released in March revealed that growth in the infrastructure or core sector fell to 2.9 percent in February from 5.1 percent in January, the lowest level in five months.

The growth rate of 4.1 percent during the April-February period was lower than the 6 percent growth rate during the same period in the previous fiscal year.

While growth in the mining and manufacturing sectors slowed, the only one of the three main sectors to grow more quickly was power, which increased by 3.6 percent from 2.4 percent the month before.

Mining growth slipped to a four-month low of 1.6 percent from 4.4 percent in February, while manufacturing increased 2.9 percent in February after growing 5.8 percent the month before.

 

Data from use-based industries indicates that all six sectors are experiencing slower development. Consumer durables growth slowed to 3.9 percent from 7.2 percent, while consumer non-durables continued to drop at 1.8 percent after a 0.3 percent slump the month before.

The infrastructure and capital goods sectors kept reporting improving figures. While the construction goods sector saw a drop to 6.4 percent from 7.4 percent the previous month, capital goods growth, at 9 percent, was only little smaller than 10.3 percent.

Compared to the previous month's rise of 5.5 percent, primary goods growth was half, at 2.8 percent.

The biggest sector of India's industrial index, manufacturing, is predicted to expand by 4.3 percent in FY25 after growing by 12.3 percent in the previous fiscal year.

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The result also takes into account the modest increase in government capital expenditures, which in the eleven months of the fiscal year only amounted to 80 percent of the full-year plan.