India's Industrial Output Contracts By 10.4% In July

India's industrial output contracted by 10.4 percent in July 2020 when compared to growth of 4.3 percent seen in the same month a year ago.

Data on Quick Estimates of Index of Industrial Production (IIP) released by the Ministry of Statistics & Programme Implementation on Friday shows that the index for July stood at 118.1 against 54.0, 89.5 and 108.9 for April 2020, May 2020 and June 2020, respectively.

In June, a contraction of 16.6 percent was seen in IIP.

"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 statement said.

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of July 2020 stand at 87.2, 118.8 and 166.3 respectively.

As per Use-based classification, the indices stand at 114.1 for Primary Goods, 70.9 for Capital Goods, 122.9 for Intermediate Goods and 125.2 for Infrastructure/ Construction Goods for July. Further, the indices for Consumer durables and Consumer non-durables stand at 99.5 and 156.4 respectively for the month of review.