India IIP contracts 1.9% in November 2020 versus 3.6% expansion in October

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The Index of Industrial Production (IIP) contracted 1.9 percent for November 2020, showed the data released by the Ministry of Statistics and Programme Implementation (MoSPI) on January 12.

The factory output in the country had grown at 3.6 per cent in October.

The previous high recorded was in February 2020, when IIP rose 5.2 percent, while it plunged to 0.48 to percent in September 2020 following the dry months after the COVID-19 lockdown. On a year-on-year basis, the IIP for November in 2019 grew 2.1 percent.

For November 2020, the IIP with base 2011-12 stands at 126.3, showed the ministry's data. The MoSPI in its quick estimate of IIP for November data mentioned that the indices for industrial production for sectors like mining, manufacturing, and electricity stood at 104.5, 128.4 and 144.8, respectively.

In percentage terms, mining and manufacturing output shrank by 7.3 percent and 1.7 percent, while electricity output grew by 3.5 percent in November 2020.

Industrial output grows 3.6% in October, indicating strong recovery

However, the indices of IIP - as per used-based classification - stood at 121.3 for primary goods, 84.6 for capital goods, 136.7 for intermediate goods and 135.5 for infrastructure/construction goods for the month of November 2020. Consumer durables and consumer non-durables stood at 115.9 and 149.1, respectively.

Along with November 2020's Quick Estimates of IIP, the indices for October 2020 have undergone the first revision and those for August 2020 have undergone the final revision in the light of the updated data received from the source agencies.

"The Quick Estimates for November 2020, the first revision for October 2020 and the final revision for August 2020 have been compiled at weighted response rates of 87 percent, 93 percent and 95 percent, respectively," the ministry release said.

The MoSPI releases quick estimates of IIP on every month's 12th (or previous working day if 12th is a holiday) with a six weeks lag. The next IIP data for December 2020 will be on Friday, February 12, 2021.