Industrial production grew 11.5 per cent in July 2021 due to a good performance by the manufacturing, mining and power sectors.
The manufacturing sector, which accounts for 77.63 per cent of the Index of Industrial Production (IIP), grew 10.5 per cent in July, according to data released by the National Statistical Office (NSO) on Friday, September 10, 2021.
In July, mining sector output grew 19.5 per cent while electricity generation grew 11.1 per cent. In July 2021, the IIP stood at 131.4 points compared to 117.9 points in the same month last year. As per NSO data, the index stood at 131.8 points in July 2019.
The data showed that industrial output improved but slightly (0.3 per cent) below the pre-pandemic level in July 2019. The IIP had contracted 10.5 per cent in July 2020.
Month on Month Growth of IIP
Industrial production fell by 18.7 per cent in March last year following the outbreak of COVID-19 and remained in negative territory till August 2020. With the resumption of economic activities, factory output grew by 1 per cent in September 2020 and by 4.5 per cent in October. In November 2020, factory output fell by 1.6 per cent and then entered the positive territory with a growth of 2.2 per cent in December 2020. The IIP had registered a contraction of 0.6 per cent in January and 3.2 per cent in February this year. It rose 24.2 per cent in March and grew by 28.6 per cent in May and 13.6 per cent in June 2021.
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. “The growth rates over the corresponding period of the previous year are to be interpreted considering the unusual circumstances on account of COVID-19 pandemic since March 2020,” NSO said in a statement.
Other sectors growth
Production of capital goods, which is a barometer of investment, grew 29.5 per cent in July 2021. It saw a contraction of 22.8 per cent in the year-ago period. Consumer durables manufacturing grew by 20.2 per cent in the month under review as against a decline of 23.7 per cent in July 2020.