Factory output measured in terms of Index of Industrial Production (IIP) was 2.5 percent in March last year, as per data released by Central Statistics Office (CSO).

The index had registered a growth of about 2 percent in February this year.

For the entire 2015-16 fiscal, the factory output grew at 2.4 percent, down from 2.8 percent in the previous fiscal.

The manufacturing sector, which accounts for over 75 percent of the index, declined by 1.2 per cent in March against a growth of 2.7 percent in same month a year ago. The sector has not done well in 2015-16 as it grew at meager rate of 2 percent compared to 2.3 percent in previous year.

Mining sector output too contracted by 0.1 percent in March compared to a growth of 1.2 a year ago. In 2015-16, the sector grew at 2.2 percent up from 1.1 percent in previous fiscal.

However, the power sector performed well recording a robust growth of 11.3 percent in March up from 2 per cent year ago. During the financial year as a whole, power generation recorded a growth of 5.6 percent, down from 8.4 percent in 2014-15.

Capital goods segment, which is a barometer of investment, contracted by 15.4 percent in March as against a growth of 9.1 percent year ago. During 2014-15, the output of these goods also declined by 2.9 percent compared to a growth of 6.3 percent in previous fiscal.

Overall, 12 of the 22 industry groups in manufacturing sector showed positive growth in March 2016 as compared to a year ago.

The industry group ‘Radio, TV and communication equipment & apparatus’ has shown the highest positive growth of 36.5 percent, followed by 19.8 percent in ‘Tobacco products’ and 16.9 percent in ‘Wearing apparel; dressing and dyeing of fur’.

On the other hand, the industry group ‘Electrical machinery & apparatus n.e.c.’ has shown the highest negative growth of (-)36.2 percent, followed by (-)15 percent in ‘Food products and beverages’ and (-)9.9 percent in ‘Publishing, printing & reproduction of recorded media’.

 Latest News from Business News Desk