By Anant Vijay Kala
NEW DELHI--India's infrastructure output contracted in February as production of coal, crude oil and electricity fell, reflecting the weak state of the country's industry that has been struggling to expand amid a sharp economic slowdown.
Output of the eight infrastructure industries, which have a 38% weight in India's index of industrial production, shrank 2.5% from a year earlier, compared with a 3.1% expansion in January, government data showed Monday.
India's industrial output has contracted in six of the 10 months through January. The latest infrastructure data would stoke worries that industrial output for February, scheduled to be announced on April 12, could show continued weakness and damp hopes of any immediate recovery in the South Asian economy.
Recent government data showed the economy expanded just 4.5% from a year earlier in the October-December period, or the fiscal third quarter. It is projected to expand about 5.0% in the fiscal year ended on March 31--that would be its weakest pace in a decade.
High inflation and wide fiscal and current-account deficits on top of a weak global economy have led to the economic crisis.
Since September, the government has taken steps such as reducing subsidies and easing foreign investment rules in retail, civil aviation and television broadcasting to boost growth. But industry groups say more sectors need to be opened up to attract overseas money and revitalize the economy. They have also been pressuring the central bank to bring down interest rates.
According to Monday's data, coal output fell 8.0% in February, compared with a 2.3% increase in the previous month. Crude oil production contracted 4.0% after a 0.2% fall in January, while electricity output fell 4.1% following a 6.3% expansion a month before.
For the April-February period, infrastructure output grew 2.6%, compared with a 5.2% expansion in the same period of the previous year, the data showed.
Write to Anant Vijay Kala at anant.kala@dowjones.com
(END) Dow Jones Newswires
April 01, 2013 05:07 ET (09:07 GMT)
NEW DELHI--India's infrastructure output contracted in February as production of coal, crude oil and electricity fell, reflecting the weak state of the country's industry that has been struggling to expand amid a sharp economic slowdown.
Output of the eight infrastructure industries, which have a 38% weight in India's index of industrial production, shrank 2.5% from a year earlier, compared with a 3.1% expansion in January, government data showed Monday.
India's industrial output has contracted in six of the 10 months through January. The latest infrastructure data would stoke worries that industrial output for February, scheduled to be announced on April 12, could show continued weakness and damp hopes of any immediate recovery in the South Asian economy.
Recent government data showed the economy expanded just 4.5% from a year earlier in the October-December period, or the fiscal third quarter. It is projected to expand about 5.0% in the fiscal year ended on March 31--that would be its weakest pace in a decade.
High inflation and wide fiscal and current-account deficits on top of a weak global economy have led to the economic crisis.
Since September, the government has taken steps such as reducing subsidies and easing foreign investment rules in retail, civil aviation and television broadcasting to boost growth. But industry groups say more sectors need to be opened up to attract overseas money and revitalize the economy. They have also been pressuring the central bank to bring down interest rates.
According to Monday's data, coal output fell 8.0% in February, compared with a 2.3% increase in the previous month. Crude oil production contracted 4.0% after a 0.2% fall in January, while electricity output fell 4.1% following a 6.3% expansion a month before.
For the April-February period, infrastructure output grew 2.6%, compared with a 5.2% expansion in the same period of the previous year, the data showed.
Write to Anant Vijay Kala at anant.kala@dowjones.com
(END) Dow Jones Newswires
April 01, 2013 05:07 ET (09:07 GMT)
