Industrial output grows 13.6% in June
NEW DELHI: Macroeconomic indicators brought as industrial production surged by 13.6% in June mainly due to a low-base effect and good performance by manufacturing, mining and power sectors but the output remained below the pre-pandemic level.
The manufacturing sector, which constitutes 77.63% of the Index of Industrial Production (IIP), grew by 13% in June this year, according to the data released by the National Statistical Office (NSO) on Thursday.
The mining sector output rose by 23.1% in June while power generation increased by 8.3%.
In June 2021, the IIP stood at 122.6 points compared to 107.9 point in the same month last year. The index was at 129.3 points in June 2019 as per the NSO data.
The data showed that industrial production recovered but was still below the pre-pandemic level of June 2019. The IIP had contracted by 16.6% in June 2020.
Industrial production had plunged 18.7% in March last year following the Covid-19 outbreak and remained in the negative zone till August 2020.
With the resumption of eco“the nomic activities, factory output rose 1% in September. The IIP had grown by 4.5% in October. In November 2020, the factory output fell 1.6% and then entered the positive territory by growing 2.2% in December 2020.
The IIP had recorded a contraction of 0.6% in January and 3.2% in February this year. In March, it grew by 24.2%. For the month of April, the NSO held back the release of complete IIP data. In May this year, it grew 28.6%.
The second wave of the pandemic started in the middle of April this year and many states imposed restrictions to curb the spread of coronavirus infections.
growth rates over corresponding period of previous year are to be interpreted considering the unusual circumstances on account of pandemic since March 2020,” NSO said.
The government had imposed a nationwide lockdown to contain the spread of coronavirus infections on March 25, 2020.
With the gradual relaxation of restrictions, there has been a relative improvement in economic activities as well as in data reporting, the Ministry of Statistics and Programme Implementation had said in a statement in November.
Earlier, the ministry had also given a disclaimer that it may not be appropriate to compare the IIP in the post-pandemic months with the data for the months preceding the pandemic.
The manufacturing sector had recorded a contraction of 17% in June 2020. Mining sector output fell 19.5% in the same month last year. The electricity generation had declined 10% in June 2020.
The output of capital goods, which is a barometer of investment, grew 25.7% in June 2021 as against a contraction of 37.4 % in the year-ago period.
Consumer durables manufacturing increased 30.1% in the month under review compared to a 34.8% decline in June 2020.