Seasonally adjusted industrial production fell by 0.3 percent in the 19-country eurozone and by 0.2 percent in the 28-member European Union (EU) in February month-on-month, data showed.
January's output numbers were also cut to 0.3 percent month-on-month from an initially reported 0.9 percent and to 0.2 percent year-on-year from the 0.6 percent published a month ago. Indicates that the growth remains fragile in manufacturing and need continued efforts to make the sector competitive. Assocham said the risks to the Indian economy continue to prevail in the form of uncertainty related to the next monsoon season, protectionist policies adopted by the USA, change in the policy stance by RBI from accommodative to neutral, muted growth in fixed capital formation in GDP and mounting bad debts in public sector banks.
The decline in IIP in February is mainly on account of 2 per cent contraction in manufacturing sector, which constitutes over 75 per cent of the index.
"The cumulative growth for the period April-February 2016-17 over the corresponding period of the previous year stands at 0.4 percent", the official statement said. It had risen by 1.9 per cent in February past year.
The non-durable consumer goods output shrank by 8.6 per cent in February over a contraction of 4.9 per cent year ago.
Industrial growth contracted unexpectedly in February while consumer inflation quickened to a five-month high in March, a double setback for the Indian economy as it enters the new financial year.
Inflation based on Consumer Price Index (CPI) was at 3.65 percent in February. For fuel and light category, inflation rose to 5.56 per cent for the month. For milk & products and eggs, prices were up by 4.69 per cent and 3.21 per cent respectively.
Prepared meals, snacks and candies prices were also high as prices grew by 6.13 percent.
Meanwhile, retail inflation rose marginally to 3.81 per cent in March from 3.55 per cent in February 2017.