India’s industrial production
Today, India’s Ministry of Statistics released its industrial production data for April. Industrial production rose 3.4% in April, the most since October 2018, when it rose 8.4%. The mining, manufacturing, and electricity indexes all showed growth. Mining production grew 5.1% year-over-year, while electricity production 6%, compared with 3.8% and 2.1% growth, respectively, in April 2018.
Manufacturing sector slows
While the manufacturing sector’s growth in April was higher than March’s 0.1%, it was below April 2018’s 4.9%. Of 23 manufacturing sectors, 14 grew in April 2019 and nine contracted. Production of basic materials, coke, and petroleum grew more than average.
Capital goods production grew 2.5% in April 2019, below April 2018’s 9.8%. The infrastructure sector also saw muted growth, of 1.7%, as India’s elections suppressed infrastructure activity.
How are India-focused ETFs responding?
As the industrial production data was released after Indian stock markets closed, the data will likely reflect in markets tomorrow. Major India-focused ETFs, like most Asian indexes, fell today. The WisdomTree India Earnings ETF (EPI) was down 0.51% as of 12:08 PM Eastern Time, while the iShares MSCI India ETF (INDA) was trading 0.45% below yesterday’s close.