Green shoots: Deceleration in July’s industrial activity eases

New Delhi, Sep 11 (SocialNews.XYZ) A sequential rebound in industrial activity eased the contraction rate of India's factory output in July, official data showed on Friday.

However, Covid-19 pandemic continued to heavily dent India's factory output on a year-on-year basis.

As per the Quick Estimates of Index of Industrial Production (IIP), the contraction in factory output eased to (-) 10.4 per cent in July from (-) 16 per cent reported for June.

Nevertheless, on a YoY basis, the comparison becomes even more stark, as the IIP had registered a growth of 4.9 per cent in the corresponding period of last year.

Besides, the Ministry of Statistics and Programme Implementation's estimates document said that the current index readings should not be compared with those of the months preceding the Covid-19 pandemic.

"In view of the preventive measures and announcement of nation-wide lockdown by the government to contain spread of Covid-19 pandemic, a large number of the industrial sector establishments were not operating from the end of March, 2020 onwards," the ministry said.

"This has had an impact on the items being produced by the establishments during the period of lockdown. With the lifting of restrictions in the subsequent periods, industrial activity is resuming."

Accordingly, the IIP for mining, manufacturing and electricity sectors for July 2020 stood at 87.2, 118.8 and 166.3 respectively.

In July, the manufacturing production de-grew by (-) 11.1 per cent from (-) 15.9 per cent in June and a growth of 4.8 per cent reported for the corresponding month of last year.

Similarly, electricity generation contracted by (-) 2.5 per cent from (-) 10.2 per cent in June and a growth of 5.2 per cent in July 2019.

The mining output declined by (-) 13 per cent from (-) 19.6 per cent in June from an increase of 4.9 per cent in the corresponding month of the previous year.

Source: IANS