India's industrial production contracts 10.4% in July
14 September 2020
Industrial production in the country based on the Index of Industrial Production (IIP) contracted 10.4 per cent in July 2020 compared to a year ago, quick estimates released by the government showed.
Industrial production based on IIP was down 15.7 per cent in June. The estimates for July 2020 were compiled at a weighted response rate of 87 per cent, according to an official statement.
India’s industrial output contracted for the fifth consecutive month in July led by a fall in production of consumer durables and capital goods.
In view of the preventive measures and the nation-wide lockdown to contain spread of Covid-19 pandemic, a large number of the industrial establishments were not operating from the end-March 2020. This has had an impact on the production during the lockdown period. With the lifting of restrictions in the subsequent periods, industrial activity is resuming.
The Index for the month of July 2020 stands at 118.1 as compared to 54.0, 89.5 and 108.9 for April 2020, May 2020 and June 2020.
Production in the mining, manufacturing and electricity sectors have all shown decline in July 2020 with index levels at 87.2, 118.8 and 166.3, respectively, as per the quick estimates.
Production of primary goods, capital goods, intermediate goods and infrastructure/ construction goods have all shown decline in July 2020. Production of consumer durables and consumer non-durables also stand lower for July 2020.
Along with the quick estimates of IIP for July 2020, the indices for June 2020 have undergone the first revision and those for April 2020 the final revision in the light of the updated data received from the source agencies.
The first revision for June 2020 was done at a weighted response rate of 93 per cent and the final revision for April 2020 at a weighted response rate of 94 per cent.