IIP contracts 1.9% in November; fails to continue revival trend

The Index of Industrial Production (IIP) contracted 1.9 per cent for November 2020, culling the trend of factory output in the previous two months showing signs of revival, data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed on Tuesday.

For November, IIP with base 2011-12 stands at 126.3, the Ministry’s data showed. IIP for mining, manufacturing and electricity sectors for the same month stand at 104.5, 128.4 and 144.8, respectively.

Mining and manufacturing output shrank by 7.3 per cent and 1.7 per cent, respectively, while electricity output grew by 3.5 per cent in November.

October IIP had grown at 3.6 per cent helped by festive demand and a sharp base effect, while in November 2019 IIP grew 2.1 per cent. Economists had however cautioned that this did not signal recovery, and estimated IIP to mildly contract in November.

The previous high was in February, when IIP rose 5.2 per cent. After February, with the Covid-19 lockdowns in effect, factory output rose after many months in September at 0.48 per cent.

Output of eight core infrastructure sectors dropped by 2.6 per cent in November, a recent release showed, contracting for the ninth consecutive month.

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