Factory output shrinks 1.9% in Nov, enters negative zone after 2 months : The Tribune India

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Factory output shrinks 1.9% in Nov, enters negative zone after 2 months

Retail inflation fell sharply to 4.59% in December, mainly due to declining food prices, government data showed on Tuesday.

Tribune News Service
New Delhi, January 12

After remaining in positive territory for barely two months, the Index of Industrial Production (IIP) contracted by 1.9 % in November, 2020, mainly due to poor showing by the manufacturing and mining sectors, according to official data released by the National Statistical Office (NSO) on Tuesday.

Retail Inflation drops to 4.59% in Dec

Retail inflation fell sharply to 4.59% in December, mainly due to declining food prices, government data showed on Tuesday

Retail inflation based on the Consumer Price Index (CPI) was 6.93% in November

Food inflation declined to 3.41% in December in 2020, compared to 9.5% in the previous month, according to the data released by the Ministry of Statistics and Programme Implementation

As a result, the IIP for the April-November period has contracted by 15.5 %.

The manufacturing sector — which constitutes 77.63 % of the IIP index — registered contraction of 1.7 % in November 2020. The mining sector declined by 7.3 %. Power generation was the saving grace with a growth rate of 3.5 %.

The IIP had grown by 2.1% in November 2019.

After registering a 18.7 % contraction in March last year, industrial production seemed to have turned the corner in September with a growth of 0.48 % in September followed by a more encouraging 4.9 % in October last year.

The output of capital goods fell by 7.1% in November 2020, consumer durables output fell by 0.7% and consumer non-durable goods production fell by 0.7%.

However the Ministry of Statistics and Programme Implementation has said it may not be appropriate to compare the IIP in post-pandemic months with the data before the Central Government imposed a lockdown. The government had imposed a lockdown to contain the spread of Covid infections on March 25, 2020.

With the gradual relaxation of restrictions, there has been a relative improvement in the economic activities by varying degrees as well as in data reporting, the minisry had said in November.