The industrial production was boosted by an increase in the manufacturing output that doubled from the January level in February.
India’s factory output growth stood at a 7-month high in the month of February. The Index of Industrial Production (IIP) grew at 4.5 per cent on-year in February, which is more than double the growth rate of 2.1 per cent in January 2020. The industrial production was boosted by an increase in the manufacturing output that also doubled from the January level in February. The IIP data signifies the green shoots of economic revival that had started to appear after a longer-than-expected slowdown in India. However, even before the economy could maintain the momentum, the coronavirus pandemic and the nationwide lockdown have once again restricted the growth of industries.
The Indices of Industrial Production for the mining, manufacturing and electricity sectors for the month of February 2020 grew at 10 per cent, 3.2 per cent, and 8.1 per cent respectively on-year, according to the Ministry of Statistics & Programme Implementation (MOSPI). Thirteen out of the twenty-three industry groups in the manufacturing sector have shown positive growth during the month of February 2020 as compared to the corresponding month of the previous year.
Among the industry groups, the manufacture of basic metals has shown the highest positive growth of 18.2 per cent followed by 8.0 percent in the manufacture of chemicals and chemical products and in the manufacture of other non-metallic mineral products. On the darker side, the manufacture of motor vehicles, trailers and semi-trailers has shown the highest contraction of 15.6 percent followed by 14.8 per cent contraction in the manufacture of computer, electronic and optical products.
Meanwhile, the production of consumer durables saw a sharp contraction while there has been no growth in the consumer non-durable products. The production of capital goods also faced a major contraction in the month of February.