Industrial Production Rises To 11.5% In July On Low Base Effect: All You Need To Know

Industrial Production Rises To 11.5% In July On Low Base Effect: All You Need To Know
IIP Data: Industrial production grew by 11.5 per cent in July 2021
  1. The index of industrial production (IIP) in July stood at 131.4. The industrial production index during the April-July period of the current fiscal grew 34.1 per cent, compared to a de-growth of 29.3 per cent in the year-ago period. (Also Read: Infrastructure Output Of Core Sectors Rises 9.4% In July 2021 )
  2. The indices for the manufacturing, mining, and electricity sectors for July 2021 stand at 130.9, 104.6, and 184.7, respectively, according to the industrial production data released by the Ministry of Statistics and Programme Implementation today. 
  3. Industrial production - or the factory output, gauged by the industrial production index, rose 13.6 per cent in June 2021 due to the low base effect. (Also Read: Industrial Production Rises To 13.6% In June Due To Low Base Effect )
  4. The manufacturing sector, which comprises 77.63 per cent of the index of industrial production, grew 10.5 per cent in July, compared to a de-growth of 11.4 per cent in the year-ago period. The mining output also climbed 19.5 per cent and power generation grew by 11.1 per cent.
  5. The output of capital goods - a barometer of investment, grew 29.5 per cent in July, compared to a de-growth of 22.8 per cent in July 2020. The output of consumer durables increased 20.2 cent, compared to a decline of 23.7 cent in the year-ago period.
  6. However, the output of consumer non-durable goods declined 1.8 per cent in July 2021, compared to a growth of 1.8 per cent in the year-ago period.
  7. The country's output of the eight core sectors — also known as the infrastructural output, grew 9.4 per cent in July 2021, according to government data released on August 31.
  8. The infrastructure output, comprising the eight core sectors including crude oil, coal, electricity, among others recorded a growth of 21.2 per cent in the April-July period of the current fiscal 2021-22, compared to a de-growth of 19.8 per cent in the corresponding period last year. 
  9. The eight core industries consist of 40.27 per cent of the weight of items that are included in the industrial output or the IIP. The growth in the infrastructure output was mostly led by the coal, cement, and natural gas sectors.
  10. ''...It can be noted that the overall index is still 0.3 per cent lower than the pre-pandemic levels in Jul-19. But given the overall growth momentum in Aug-Sep that is reflected in high-frequency indicators, economic activity has almost reverted to pre-second Covid wave peak,'' said Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research.
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