No factory output growth data for second month in a row; govt to revise IIP policy

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Updated: Jul 10, 2020 6:47 PM

The IIP for the mining, manufacturing, and electricity sectors stood at 87.0, 82.4, and 149.6 respectively in May.

IIP , industrial production, Index of industrial production, IIP in May, revision in IIP policy Even as the factories’ output remained subdued in the month of May, IIP for primary goods stood at a slightly elevated level of 105.5, compared to 37.1 for capital goods and 77.6 for intermediate goods.

The Modi government did not release IIP growth data for the second consecutive month in May 2020. However, the Ministry of Statistics and Programme Implementation (MOSPI) showed that the index for the month of May 2020 gradually improved to 88.4, compared to 53.6 in April 2020. The government said that majority of the factories were not operating from the end of March, 2020 due to the lockdown restrictions imposed to contain the coronavirus pandemic.  It added that the effect of lockdown has also been visible on factories’ output even in the subsequent periods of conditional relaxations in restrictions. 

The IIP for the mining, manufacturing, and electricity sectors stood at 87.0, 82.4, and 149.6 respectively in May. Even as the factories’ output remained subdued in the month of May, IIP for primary goods stood at a slightly elevated level of 105.5, compared to 37.1 for capital goods, 77.6 for intermediate goods, and 84.1 for infrastructure or construction goods.

Also Read: Housing relief for migrant workers; thousands of PMAY houses ready to move-in: Piyush Goyal

The MOSPI report released today also mentioned that the quick estimates will undergo revision in subsequent releases as per the revision policy of IIP. Last month, the government had said that the estimates of industrial production are likely to undergo a revision in policy in the subsequent months. The statement came after the government did not release April’s IIP, citing the unavailability of data due to the impact of lockdown. The Ministry of Statistics and Programme Implementation had underlined that it is not appropriate to compare the IIP of April 2020 with earlier months.

Watch: News with Financial Express July 10, 2020

Meanwhile, India’s industrial production witnessed the steepest contraction of 18.3 per cent on-year in March 2020 as the coronavirus pandemic forced many businesses to shut down. In the month of March, manufacturing production had contracted at a record pace of 22.4 per cent, while electricity and mining sectors had contracted by 8.2 per cent and 1.4 per cent respectively.

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