Official data released on Tuesday showed that the recovery in industrial output seen in October turned out to be an aberration as it contracted again in November by 1.9 per cent, belying hopes of a festive boost. This has prompted economists to call for the continuation of the stimulus package in the upcoming Budget.
Industrial output growth, as measured by the index of industrial production (IIP), was revised upwards to 4.19 per cent in October, compared with 3.6 per cent estimated initially. IIP was almost flat in September after having declined continuously since March. IIP grew 2.1 per cent in November 2019.
IIP declined by 15.5 per cent in the first eight months of financial year 2020-21 (FY21), compared with 0.3 per cent growth in the corresponding period of the previous year. This shows that output was already slowing last year, but the Covid-induced lockdowns dragged it to contraction this year.