Industrial production in the country contracted by 1.9 per cent in November 2020, after registering a rise in October, government data showed on Tuesday, January 12, 2021.
According to the Index of Industrial Production (IIP) data, manufacturing sector output shrank by 1.7 per cent in November 2020. Mining output also declined 7.3 per cent, while power generation grew 3.5 per cent. The IIP had grown by 2.1 per cent in November 2019.
Industrial production has been hit due to the COVID-19 pandemic since March last year when IIP contracted by 18.7 per cent in the month.
Industrial production – or factory output – is gauged by the Index of Industrial Production (IIP), which takes into account activity recorded in sectors such as mining, manufacturing and electricity.
For the month of November 2020, the Quick Estimates of Index of Industrial Production (IIP)with base 2011-12 stands at 126.3. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of November 2020 stand at 104.5, 128.4 and 144.8 respectively. These Quick Estimates will undergo revision in subsequent releases as per the revision policy of IIP.
As per Use-based classification, the indices stand at 121.3 for Primary Goods, 84.6 for Capital Goods, 136.7 for Intermediate Goods and 135.5 for Infrastructure/ Construction Goods for the month of November 2020. Further, the indices for Consumer durables and Consumer non-durables stand at 115.9 and 149.1 respectively for the month of November 2020.
“It was obvious that the industrial growth will contract after the output in eight-core sector slumped. Overall the industrial recovery continues to be uneven and fragile and will require the stimulus support to stay in momentum.”
r. Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.