DEFINITION – Index of Industrial Production (IIP) for India which shows the growth rates in various sectors in an economy such as minerals, mining, electricity,
and manufacturing. The IIP Index is computed and published by the Central Statistical Organisation (CSO), in a stipulated period of time on monthly basis.
Headquarters in New Delhi, India. Under the Ministry of Statistics and Programme Implementation.
According to National Statistical Office (NSO) data, manufacturing sector output rose by 3.2% in february compared to contraction of 0.3% in the same month a year ago.
In terms of industries, 13 out of 23 industries grows in the manufacturing sector have shown positive growth in february 2020.
All
All the three sectors, mining, manufacturing and electricity saw a contraction, although the fall in manufacturing was the steepest.
- Manufacturing output contracted by 20.6% in march compared to growth of 3.2% in february.
- Electricity generation contracted by 6.8% compared to growth of 8.1% in february.
- Mining output was flat in march after it grew by 10% in february.
The Index of Industrial Production fell by 16.7% in march over last year, the governments statistical office said. According to revised data for the previous months,
IIP grew by 2.08% in january 2020, by 4.62% in february 2020 and by 16.7% in march. For march the data was released with he caveat that information flow from
producing units was impacted due to the lockdown. As a consequence of the lower response rate, the quick estimates released are likely to undergo revision.
Still, the contraction in industrial output reported is worse than anticipated. Thirty one economist polled by bloomering had forecast a fall of 8% in march IIP.
With the year-on-year performance of many lead indicators of manufacturing and services portraying an unfavorable trend in the just- concluded quarter, driven by
the Covid-19 related disruptions, GDP growth is expected to slide to 2%.
SYNOPSIS– The cumulative growth for the period of april-february 2019-20 over the corresponding period of the previous year stood at 0.9%.
