2021-01-12 12:45:39
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, the manufacturing sector output shrank by 1.7 per cent in November 2020. The mining output also contracted 7.3 per cent, while power generation grew 3.5 per cent. The IIP had grown by 2.1 per cent in the corresponding month of 2019. Industrial production has been hit due to the COVID-19 pandemic since March 2020, when the IIP declined by 18.7 per cent in the month.
Industrial production – or the factory output – is gauged by the Index of Industrial Production (IIP), which takes into consideration, the activity recorded in sectors such as mining, manufacturing, and electricity.
According to a statement released by the central government, the indices of industrial production for the mining, manufacturing, and electricity sectors for the month of November 2020 stands at 104.5, 128.4, and 144.8 respectively. As per the 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 in the month of November 2020. The indices for the consumer durables as well as consumer non-durables stand at 115.9 and 149.1 respectively for the month.
“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,” said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
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