India’s industrial output surges 134.4% in April on low-base effect

Industrial production grew by as much as 134.4 per cent in the month of April, mainly on account of a low base from last year, government data released on Friday showed.

Factory output, as measured by the Index of Industrial Production (IIP), rose 22.4 per cent in March 2021 and had contracted by a massive 57.3 per cent in the April month last year as a coronavirus-induced lockdown froze economic activity.

Manufacturing sector output, which accounts for more than three-fourths of the entire index, registered a growth of 197.1 per cent as against a de-growth of (-) 66 per cent in the year-ago period.

The government said that the numbers are not comparable to the year-ago period as that the nationwide lockdown and other measures from the end of March 2020, had led to a majority of the establishments not operating in April 2020 and consequently.

“There were many units which reported ‘Nil’ production, affecting comparison of the indices for the months of April 2020 and April 2021.”

Similarly, mining activity, which has a weight of over 14 per cent in the overall index, saw 37 per cent growth compared to a 26.9 per cent contraction in the same month last year.

Electricity generation growth stood at 38.1 per cent in April as against a fall of (-) 22.8 per cent in the last year period.

For the month of April 2021, the quick estimate number of IIP with base 2011-12 stood at 126.6.

Capital goods output, which is a signal for private investment, grew over 1,000 per cent in comparison to a (-) 92.7 per cent fall in production last year.

Again due to the low base, Consumer durables output witnessed sharpest expansion of 1,943 per cent in April, from a fall of (-) 95.6 per cent last year.

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