IIP turns positive in December, grows by 1% after temporary blip in November

With the opening up of the economy and ease in restrictions, manufacturing firms received 'substantially higher new orders' in Q2FY21.

Index of Industrial Production (IIP) for the month of December turned positive again and showed an expansion of 1 per cent, primarily led by basic metals, pharmaceutical and petrochemical products, and an overall positive growth in the manufacturing sector.

This comes after IIP had contracted by 1.9 per cent in November. It had expanded in October and September after six straight months of contraction due to COVID-19. Analysts had then termed this a temporary blip.

“For the month of December 2020, the Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 stands at 135.9. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of December 2020 stand at 115.1, 137.5 and 158.0 respectively,” the National Statistical Office (NSO) said in a press release on February 12.