Industrial production declined by 8 per cent in August, mainly due to lower output of manufacturing, mining and power generation sectors, official data showed on Monday. With the gradual relaxation of Covid-19 restrictions, there has been a relative improvement in the economic activities by varying degrees, Ministry of Statistics and Programme Implementation said in a press release.
” It may not be appropriate to compare the IIP in the post pandemic months with the IIP for months preceding the COVID 19 pandemic,” the Ministry of Statistics and Programme Implementation said in a statement.
According to the Index of Industrial Production (IIP) data, manufacturing sector production registered a decline of 8.6 per cent, while the output of mining and power segments fell 9.8 per cent and 1.8 per cent, respectively.
“India’s August IIP has contracted by 8 per cent compared to contraction of 10.4 per cent in July. A large number of industrial establishments are not working regardless of the unlock. But the pick up in manufacturing and service sector is helping the IIP move in the right direction,” Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services said in a statement.
“For the month of August 2020, the Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 stands at 116.1. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of August 2020 stand at 83.0, 117.4 and 162.7 respectively,” the ministry added.
The IIP had contracted by 1.4 per cent in August 2019.