India factory output declines 16.6 per cent in June

With the lower output of manufacturing, mining, and power generation, India's factory output, measured on the basis of Index of Industrial Production (IIP), declined by 16.6 per cent in June 2020.

As per the data released by National Statistical Office (NSO) under Ministry of Statistics and Programme Implementation, the Quick Estimates of IIP with base 2011-12 stood at 107.8 for the month of June 2020.

Index of Industrial Production for the mining, manufacturing and electricity sectors for the month of June 2020 stood at 85.4, 106.9 and 156.2, respectively. The Quick Estimates will undergo revision in subsequent releases as per the revision policy of IIP.

The Ministry said, “It may not be appropriate to compare the IIP in the post-pandemic months with the IIP for months preceding the COVID-19 pandemic”.

Meanwhile, as per Use-based classification, the indices stood at 109.2 for primary goods, 64.3 for capital goods, 102.2 for intermediate goods, and 110.7 for infrastructure/ construction goods for the month of June 2020. Further, the indices for consumer durables and consumer non-durables stood at 77.4 and 157.3, respectively for the month of June 2020.

In view of the preventive measures and announcement of a nationwide lockdown by the government to contain the spread of COVID-19 pandemic, a large number of industrial sector establishments were not operating since March-end. This had a severe impact on the items being produced by the establishments during the period of lockdown. With the lifting of restrictions in the subsequent periods, industrial activity is now resuming gradually.