In the month February industrial production has been declined sharply at a rate of 3.6 percent as compared to 0.9 percent in January. Which could impact overall economic growth in Q4 of 2020-21.
As per Index of Industrial Production (IIP) measures, factory output had grown by a 16-month high of 5.2 per cent a year ago, which was the month before lockdown was imposed towards the last week of March, 2020.
The cumulative decline during April-February (2020-21) was 11.3 per cent, compared to a growth of 1 per cent during the same period a year ago.
According to data released by the ministry of statistics and programme implementation, the November and January numbers saw a slight upward revision to (-) 1.6 per cent and (-) 0.9 per cent from (-) 2.1 per cent and 1.6 per cent, respectively.
Comparing last year output, various sectors showed a declined trend as below:
- Manufacturing sector output saw de-growth of 3.7 per cent in February from 3.8 per cent growth a year ago.
- Mining activity, which accounts for over 14 percent of the entire index contracted 5.5 per cent as compared to a 9.6 per cent growth last year.
- Electricity generation growth stood at 0.1 per cent in February, plummeting from 11.5 per cent growth in the same month last year.
- Consumer durables output grew to 6.3 per cent in February, from decline of 6.2 per cent a year ago.
- Capital goods output, which is reflective of the investment scenario, contracted 4.2 per cent in comparison with 9.6 per cent fall a year ago.
- Intermediate goods contracted 5.6 per cent in February from 23 per cent percent a year ago, while consumer non-durables came in at (-) 3.8 per cent in February as compared to a degrowth of 0.3 per cent a year ago.
- Infrastructure/construction goods contracted by 4.7 per cent from a growth of 2.8 per cent in February last year.