IIP up 20% in June, yearly decline of 16%

Chennai: Quick estimates released by the Ministry of Statistics and Programme Implementation have said the Index of Industrial Production (IIP) in June was up by over 20 per cent in June, rising to 107.8 from 89.5 in May.

Year-on-year, India’s industrial production had declined by 16.6 per cent in June on account of reduced activity due to COVID-19 and several disruptions to business activity. In the same month in 2019, IIP had expanded by 1.3 per cent.

In a statement, the Ministry said, ‘In view of the preventive measures and announcement of nation-wide lockdown by the Government to contain spread of Covid-19 pandemic, a large number of the industrial sector establishments were not operating from the end of March, 2020 onwards. This has had an impact on the items being produced by the establishments during the period of lockdown.

With the lifting of restrictions in the subsequent periods, industrial activity is resuming. The Index for the month of June 2020 stands at 107.8 as compared to 53.6 and 89.5 for April 2020 and May 2020.’

It added that this IIP data cannot be compared with what numbers from the pre-pandemic period.

The decline in factory output was widespread across the sectors, including manufacturing, mining, power generation, capital goods and consumer durables, as per the data released by the Ministry.