New Delhi: Industrial output grew 11.5 per cent in July, mainly on the back of a low-base effect and a good performance from manufacturing, mining and power sectors, but output remained slightly below pre-pandemic levels.
The manufacturing sector, which accounts for 77.63 per cent of the Index of Industrial Production (IIP), grew 10.5 per cent in July, according to data released by the National Statistical Office (NSO) on Friday.
In July, mining sector output grew 19.5 per cent while electricity generation grew by 11.1 per cent.
The IIP stood at 131.4 in July 2021 as compared to 117.9 in the same month last year. As per NSO data, the index stood at 131.8 points in July 2019.
The data showed that industrial production has improved but is still slightly below the pre-pandemic level of July 2019.
IIP had declined by 10.5 per cent in July 2020.
Industrial production fell by 18.7 per cent in March last year after the outbreak of Covid and remained in negative territory till August 2020.
With the resumption of economic activity, factory output grew by 1 per cent in September 2020 and by 4.5 per cent in October. In November 2020, factory output fell 1.6 per cent and then entered positive territory with a growth of 2.2 per cent in December 2020.
The IIP had registered a decline of 0.6 per cent in January and 3.2 per cent in February this year. It rose 24.2 per cent in March.
For the month of April, NSO put a moratorium on the release of complete IIP data.
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.
“The growth rate for the corresponding period last year is to be interpreted in view of the unusual circumstances due to the COVID-19 pandemic from March 2020 onwards,” the NSO said in a statement.
The government had imposed a nationwide lockdown on March 25, 2020, to prevent the spread of coronavirus infection.
The manufacturing sector had registered a contraction of 11.4 per cent in July 2020. Mining sector output fell 12.7 percent in the same month last year. In July 2020, there was a 2.5 per cent decline in electricity generation.
Production of capital goods, which is a barometer of investment, grew 29.5 per cent in July 2021. It saw a contraction of 22.8 per cent in the year-ago period.
Consumer durables manufacturing grew by 20.2 per cent in the month under review, as against a decline of 23.7 per cent in July 2020. Production of consumer non-durables fell 1.8 percent in July, compared to a 1.8 percent increase in the year-ago period.
FacebookTwitterLinkedinE-mail
.