IIP enters positive territory after two months, grows 22.4% in March

New Delhi, May 12

Industrial production growth entered positive territory after a gap of two months with a record 22.4% rise in March this year, mainly due to the low-base effect and good show by manufacturing, mining and power sectors.

The manufacturing sector — which constitutes 77.63% of the index of industrial production (IIP) — grew by 25.8% in March 2021, as per the data released by the National Statistical Office (NSO) on Wednesday. The mining sector output too grew 6.1% in March, while power generation increased by 22.5%.

Industrial production had 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 posted a rise of 1% in September. The IIP had grown by 4.5% in October.

In November 2020, the factory output fell 1.6%, and it again entered the positive territory by growing 2.2% in December 2020. The IIP had recorded a contraction of 0.9% in January and 3.4% in February this year.

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 and in data reporting, the Ministry of Statistics and Programme Implementation had said in a statement issued in November. — PTI

Inflation eases to 4.29% in April

• Retail inflation slowed to 4.29% in April from 5.52% in March, mainly due to easing food prices, government data showed on Wednesday
• Inflation in the food basket was 2.02% in April, down from 4.87% in the preceding month

Manufacturing sector grows by 25.8%

• The manufacturing sector — which constitutes 77.63% of the index of industrial production (IIP) — grew by 25.8% in March 2021, as per the data released by the NSO today
• The mining sector output too grew 6.1% in March, while power generation increased by 22.5%
• Industrial production had plunged 18.7% in March last year following the Covid outbreak and remained in the negative zone till August 2020