Industrial Production Grows 22.4% In March: All You Need To Know

IIP Data: Industrial manufacturing grew by 22.4 per cent in March 2021

Industrial manufacturing grew by 22.4 per cent in March 2021 from a 12 months earlier, authorities information confirmed on Friday. The industrial manufacturing progress entered the constructive territory after a niche of two months because of a low base impact and powerful progress within the manufacturing, mining, and electrical energy sectors. The industrial manufacturing, or the manufacturing unit output, gauged by the Index of Industrial Production (IIP), declined 3.6 per cent in February. Separate authorities information confirmed that the retail inflation eased to 4.29 per cent in April 2021, due to a decline in meals costs. (Also Read: Retail Inflation Eases To 4.29% In April On Decline In Food Prices )

According to the commercial manufacturing information launched by the Ministry of Statistics and Programme Implementation, the indices for the mining, manufacturing, and electrical energy sectors for March 2021 stand at 139.0, 140.4, and 180.0 respectively. The manufacturing sector, which includes 77.63 per cent of the index of business manufacturing, grew 25.8 per cent in March 2021. The mining sector output additionally grew 6.1 per cent, whereas the ability era elevated by 22.5 per cent.

The output of capital items – a barometer of funding, grew 41.9 per cent in March 2021, in comparison with a contraction of 38.8 per cent within the year-ago interval. The manufacturing of shopper durables grew 54.9 per cent in March 2021, in comparison with a 36.8 per cent decline within the year-ago interval.

Moreover, the nation’s output of the eight core sectors — also referred to as the infrastructural output, grew 6.8 per cent in March 2021, based on authorities information launched on April 30. The infrastructure output, comprising the eight core sectors together with coal, crude oil, electrical energy, and so on registered a de-growth of seven per cent in the course of the April-March 2020-2021 interval. 

The eight core industries comprise 40.27 per cent of the burden of things which can be included within the industrial output or the IIP. The progress within the infrastructure output was led by the cement sector, adopted by the metal and electrical energy sectors in March 2021. (Also Read: Infrastructure Output Of Core Sectors Rises 6.8% In March 2021 )

“The IIP progress print for March 2021 has clearly benefitted from the bottom impact with the nationwide lockdown having been introduced within the final week of March 2020 and the resultant impression on industrial exercise. The general index, due to this fact shot by 22.4 per cent on a YoY foundation in comparison with the sharply decrease base in March 2020,” stated Mr. Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research.

”However, the sequential motion within the general index and all its parts – mining, manufacturing, and electrical energy has pleasantly stunned us. Even if we ignore the weaker information for Jan and Feb, the output ranges in March 2021 have gone up considerably from these seen in Dec 2020,” explains Mr Suman.

”While there’s a broad-based uptick in manufacturing on a YoY foundation because of the base impact, there was a heightened exercise within the export-driven sectors and significantly refined petroleum merchandise in March 2021. However, the sustainability of an uptrend in manufacturing is clearly in query because of the anticipated disruption brought on by Covid 2.0 in April and May 2021,” added Mr Suman.

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