India’s industrial production output contracted 10.4% in July


New Delhi: India`s industrial production output contracted 10.4 per cent in July as against a 4.9 per cent growth year-on-year (YoY), according to government data released on Friday (September 11) by the Ministry of statics and programme implementation.

“In view of the preventive measures and announcement of nation-wide lockdown by the Government to contain spread of COVID-19 pandemic, a large number of the industrial sector establishments were not operating from the end of March 2020 onwards. This has had an impact on the items being produced by the establishments during the period of lockdown,” the statement said.

“With the lifting of restrictions in the subsequent periods, industrial activity is resuming. The Index for the month of July 2020 stands at 118.1 as compared to 54.0, 89.5, and 108.9 for April 2020, May 2020, and June 2020,” read the statement.

For the month of July 2020, the Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 stands at 118.1. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of July 2020 stand at 87.2, 118.8, and 166.3 respectively.

The Quick Estimates will undergo revision in subsequent releases as per the revision policy of IIP.

As per Use-based classification, the indices stand at 114.1 for Primary Goods, 70.9 for Capital Goods, 122.9 for Intermediate Goods and 125.2 for Infrastructure/ Construction Goods (Statement III) for the month of July 2020.

Further, the indices for Consumer durables and Consumer non-durables stand at 99.5 and 156.4 respectively for the month of July 2020.

Statements giving Quick Estimates of the Index of Industrial Production for the month of July 2020 at Sectoral, 2-digit level of National Industrial Classification (NIC-2008) and by Use-based classification are given at Statements I, II and III respectively. 

A statement IV giving month-wise indices since April 2020, by industry groups (as per 2-digit level of National Industrial Classification-2008) and sectors, is also given for users to appreciate the changes in the industrial sector.

Along with the Quick Estimates of IIP for the month of July 2020, the indices for June 2020 have undergone the first revision and those for April 2020 have undergone the final revision in the light of the updated data received from the source agencies. 

The Quick Estimates for July 2020 have been compiled at a weighted response rate of 87 percent, the first revision for June 2020 at a weighted response rate of 93 percent and the final revision for April 2020 at a weighted response rate of 94 percent, the Ministry said.

The release of the Index for August 2020 will be on Monday, 12th October 2020, the statement said.

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