Factory output grows 11.5% in July on low-base effect

Performance of mfg, mining, power sectors up

Factory output grows 11.5% in July on low-base effect

New Delhi, September 10

Industrial production surged 11.5% in July mainly due to a low-base effect and good performance by manufacturing, mining and power sectors but the output remained slightly below the pre-pandemic level.

Still below pre-pandemic level

  • The manufacturing sector, which constitutes 77.63% of the Index of Industrial Production (IIP), grew 10.5% in July
  • Mining sector output rose 19.5% in July while power generation increased 11.1%
  • The IIP stood at 131.4 points in July as compared to 117.9 points in July last year
  • Industrial production recovered but was still slightly below the pre-pandemic level of July 2019

The manufacturing sector, which constitutes 77.63% of the Index of Industrial Production (IIP), grew 10.5% in July, according to the data released by the National Statistical Office (NSO) on Friday.

The mining sector output rose 19.5% in July while power generation increased 11.1%. In July 2021, the IIP stood at 131.4 points compared to 117.9 points in the same month last year. The index was at 131.8 points in July 2019, as per the NSO data.

The data showed that industrial production recovered but was still slightly below the pre-pandemic level of July 2019. The IIP had contracted by 10.5% in July 2020.

Industrial production plunged 18.7% in March last year following the Covid outbreak and remained in the negative zone till August 2020. With the resumption of economic activities, factory output rose 1% in September 2020 and grew 4.5% in October. In November 2020, the factory output fell 1.6% and then entered the positive territory with a 2.2% growth in December 2020. — PTI

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