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Index of Industrial Production (IIP)
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- The manufacturing sector contracted by 0.43% in March, the second consecutive month of contraction (it contracted 0.39% in February) and the third consecutive month of slowing growth.
- The capital goods sector contracted for a third consecutive months, by 8.66% in March compared with a contraction of 8.92% in February.
- Intermediary goods sector contracted for the fifth consecutive month, by 2.55% in March, compared with a contraction of 5.05% in the previous month.
- Possible reasons:(1) Government has very little room to manoeuvre on the fiscal side, even though the Reserve Bank of India has done what it can on the monetary policy side with two successive interest rate cuts.(2) Contraction in capital and intermediate goods (indicative of subdued investment activity) further resulted in slowdown in the industrial output(3) Uncertainties over general elections could be cited as one of the major reasons of lower activity in these segments.
Source
The Hindu.