Industrial production in India has slowed down in February. The index of industrial production for the month was 3.6% on a year-on-year basis. January’s figure was meanwhile revised upwards to 3.9%. The latest figures are lower than most expectations. Analysts say that while production is slowing down, consumer demand remains strong, which is in turn stoking inflation.
Here’s how the IIP numbers break down. Manufacturing has gained 3.5% in February. Mining shows only marginal growth of0.6%, while electricity output saw an impressive 6.7% rise. But the big disappointment was capital goods production, which plunged 18.4%.
In corporate, Sun Pharmaceuticals is now in a joint venture with American firm Merck. The two companies say they will collaborate to make and sell generic drugs in developing countries. Their merger will take place through subsidiaries. But financial details are not known. Merck wants to improve its position in branded generics. Sun Pharmaceutical is hoping to leverage Merck’s international market presence and regulatory expertise. Shares of the firm jumped 2.31% percent on the BSE on a day overall markets fell.
Indian markets tumbled on Monday in line with a poor showing from global equities. The Sensex plummeted 189 points to 19,263. And the Nifty fell 56 to close at 5,786.