New Delhi: India’s economy, battling the impact of the pandemic, showed signs of recovery with industrial output growing 11.5 per cent in July, according to data released by the National Statistical Office (NSO) on Friday. The manufacturing sector output also saw a 10.5 per cent growth in July 2021, according to data from the Index of Industrial Production (IIP).
What is the reason for the increase in industrial production?
The jump in industrial production in July is mainly due to lower base effect and better performance of manufacturing, mining and power sectors. However, production remained slightly below pre-pandemic levels.
In July, mining sector output grew 19.5 per cent while electricity generation grew by 11.1 per cent.
IIP had declined by 10.5 per cent in July 2020. IIP grew by 34.1 per cent during April-July this year. According to news agency PTI, it had shrunk by 29.3 per cent in the same period last year. Industrial production was badly hit by the pandemic since March 2020, when it contracted by 18.7 per cent. In April 2020, it declined further by 57.3 percent due to stalled economic activity due to the lockdown restrictions imposed to prevent the spread of corona virus infection.
IIP grew by 28.6 per cent in May 2021 and 13.6 per cent in June. The second wave of the pandemic began in mid-April this year and several states imposed restrictions to contain the spread of the coronavirus infection.
“In view of the unusual circumstances due to the COVID-19 pandemic from March 2020 onwards, the growth rate for the corresponding period last year is to be interpreted,” the NSO said in a statement.
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