A favourable base effect, along with inventory build-up prior to the festive season, accelerated India’s industrial activity on both sequential as well as on the year-on-year basis in September, official data showed on Thursday.
Accordingly, India’s factory output inched-up by 0.2 per cent on YoY basis. The Index of Industrial Production (IIP) had recorded a de-growth of (-) 4.6 per cent during the corresponding period of last year.
Significantly, this is the first time in the last six months that IIP readings on a YoY basis has shown a growth.
The Ministry of Statistics and Programme Implementation, in the Quick Estimates of IIP document, said the current index readings should not be compared with those of the months preceding the Covid-19 pandemic.
“With the gradual relaxation of restrictions, there has been a relative improvement in the economic activities by varying degrees as well as in data reporting,” the ministry said in the document.
Among major segments, manufacturing production de-grew by (-) 0.6 per cent from (-) 4.3 per cent reported for the corresponding month of last year.
However, electricity generation grew by 4.9 per cent from (-) 2.6 per cent during September 2019.
Similarly, mining output rose by 1.4 per cent on a YoY basis.
Furthermore, the data on a YoY basis showed that manufacturing of primary goods de-grew by (-) 1.5 per cent, capital goods by (-) 3.3 per cent, and intermediate goods (-) 1.4 per cent.
On the other hand, the production of infrastructure or construction goods inched up by 0.7 per cent and consumer durables by 2.8 per cent.
The sub-segment of consumer non-durables showed a growth of 4.1 per cent.
Also Read: India’s Covid Tally Crosses 87 Lakh
Also Read: India Enters First Ever Recession: Reserve Bank
[soliloquy id="151345"]