IIP: Industrial Production In March Touches Record Low

Data released by the Ministry of Statistics & Programme Implementation on Tuesday showed that the Index of Industrial Production (IIP) for the month of March stood at 120.1. Overall, industrial production witnessed 16.7 percent contraction in March in comparison with 4.5 percent growth in February.

In February, factory output growth was at a seven-month high, showing signs of recovery in a slowing economy. IIP data released on Tuesday shows that the nationwide lockdown due to COVID-19 outbreak has crippled economic activity. Data for the month of April, scheduled to be released on 12 June, will most likely be worse.

For the month of March, manufacturing sector output declined by 20.6 percent in March against a growth of 3.1 percent in the same month a year ago. Electricity generation fell by 6.8 percent when compared to a growth of 2.2 percent in March 2019. Mining sector activity remained flat against a growth of 0.8 percent a year ago.

For the full financial year 2019-20, the IIP contracted by 0.7 percent when compared to 3.8 percent growth in the previous year.

"In view of the global COVID-19 pandemic and consequent nationwide lockdown measures implemented since March, 2020, the data flow from the producing units was impacted. As some of these units are yet to resume operations, the response rate has been lower than usual. Consequently, the Quick Estimates are likely to undergo revision and will be incorporated in subsequent releases as per the revision policy of IIP," the notification said.