Factory output surges 11.9% on low-base effect
IIP rises to 131.1 in Aug from 117.2 in Aug 2020 and 126.2 in Aug 2019; Manufacturing, mining & power sectors surpass pre-Covid level
New Delhi: Industrial production grew 11.9 per cent in August mainly due to a low-base effect and good performance by manufacturing, mining and power sectors that surpassed the pre-Covid level.
The manufacturing sector, which constitutes 77.63 per cent of the Index of Industrial Production (IIP), grew 9.7 per cent in August, according to the data released by the National Statistical Office (NSO) on Tuesday.
The mining sector output rose 23.6 per cent in August, while power generation increased 16 per cent. In August 2021, the IIP stood at 131.1 points compared to 117.2 points in the same month last year. The index stood at 126.2 points in August 2019, as per the NSO data. The data showed that industrial production recovered and surpassed the pre-pandemic level of August 2019.
The IIP had contracted by 7.1 per cent in August 2020. Industrial production plunged 18.7 per cent 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 rose 1 per cent in September 2020 and grew 4.5 per cent in October. In November 2020, the factory output fell 1.6 per cent and then entered the positive territory with a 2.2 per cent growth in December 2020.