Industrial production grew by 11.9 per cent in August 2021 from a year earlier, government data showed on Tuesday, October 12. registering a recovery as a result of the base effect due to the pandemic that affected economic activity last year. The industrial production grew above the 11 per cent mark for the second consecutive month in August.
Industrial Production In August 2021: Here’s All You Need To Know
The index of industrial production (IIP) in July stood at 131.1. The industrial production index during the April-August period of the current fiscal grew 28.6 per cent, compared to a de-growth of 25 per cent in the year-ago period. (Also Read: Core Industries Grew By 11.6% In August 2021 )
The indices for the manufacturing, mining, and electricity sectors for August 2021 stand at 130.2, 103.8, and 188.7, respectively, according to the industrial production data released by the Ministry of Statistics and Programme Implementation today.
Industrial production – or the factory output, gauged by the industrial production index, rose 11.5 per cent in July 2021 due to low base effect. (Also Read: Industrial Production Rises To 11.5% In July On Low Base Effect: All You Need To Know )
The manufacturing sector, which comprises 77.63 per cent of the index of industrial production, grew 9.7 per cent in August. The mining output also climbed 23.6 per cent and electricity grew by 16 per cent.
The output of capital goods – a barometer of investment, grew 19.9 per cent in August, compared to a de-growth of 14.4 per cent in August 2020. The output of consumer durables increased eight per cent, compared to a decline of 10.2 cent in the year-ago period.
The output of consumer non-durable goods grew 5.2 per cent in August 2021, compared to a de-growth of three per cent in the year-ago period.
Separate government data on Tuesday showed that the retail inflation in September 2021 fell sharply to 4.35 per cent from 5.30 per cent in August, on decline in food prices, with the food inflation at 0.6 per cent.
The country’s output of the eight core sectors — also known as the infrastructural output, grew 11.6 per cent in August 2021, according to government data released on September 30.
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, natural gas, refinery products, steel, sectors.
“IIP is still showing a contraction of around five per cent if we compare it to the pre-COVID levels of Aug 2019. However, in the next few months with the economic activities moving towards normalcy, the IIP is expected to improve as being reflected by many other high frequency economic indicators,” said Ms Rajani Sinha, Chief Economist & National Director – Research, Knight Frank India