Synopsis
October IIP had grown at 3.6 per cent helped by festive demand and a sharp base effect.
CPI inflation eases to 4.59% in Dec; IIP contracts 1.9% in November
The Index of Industrial Production (IIP) contracted 1.9 per cent for November 2020, culling the trend of factory output in the previous two months showing signs of revival, data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed on Tuesday.
For November, IIP with base 2011-12 stands at 126.3, the Ministry s data showed. IIP for mining, manufacturing and electricity sectors for the same month stand at 104.5, 128.4 and 144.8, respectively.
Mining and manufacturing output shrank by 7.3 per cent and 1.7 per cent, respectively, while electricity output grew by 3.5 per cent in November.
India IIP contracts 1.9% in November 2020 versus 3.6% expansion in October
The previous high recorded was in February 2020, when IIP rose 5.2 percent, while it plunged to 0.48 to percent in September 2020 following the dry months after the COVID-19 lockdown. The IIP for November last year grew 2.1 percent.
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The Index of Industrial Production (IIP) contracted 1.9 percent for November 2020, showed the data released by the Ministry of Statistics and Programme Implementation (MoSPI) on January 12.
The factory output in the country had grown at 3.6 per cent in October.
The previous high recorded was in February 2020, when IIP rose 5.2 percent, while it plunged to 0.48 to percent in September 2020 following the dry months after the COVID-19 lockdown. On a year-on-year basis, the IIP for November in 2019 grew 2.1 percent.
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.