Low base impact, together with an increase in demand, pushed India’s industrial output higher by 11.9 per cent in August, on a year-on-year foundation. The Index of Industrial Production (IIP) for August rose by 11.9 per cent from a decline of seven.1 per cent reported for the like month a 12 months in the past.
Last 12 months, whereas the nation noticed a full-fledged lockdown, the identical was partially imposed throughout completely different areas of the nation. However, the production price was flat on a sequential foundation.
“For the month of August 2021, the ‘Quick Estimates of Index of Industrial Production’ (IIP) with base 2011-12 stands at 131.1,” the Ministry of Statistics and Programme Implementation stated. “The ‘Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of August 2021 stand at 103.8, 130.2 and 188.7, respectively.”
Among the main use-based segments, the July knowledge, on a YoY foundation, confirmed that manufacturing of major items grew by 17 per cent from (-) 10.7 per cent, whereas capital items production rose 19.9 per cent from (-) 14.4 per cent, and intermediate items elevated by 10.3 per cent from (-) 4.8 per cent.
Similarly, the production of infrastructure or development items rose by 11.1 per cent and shopper durables’ production grew by 8 per cent from (-) 10.2 per cent.
The sub-segment of shopper non-durables confirmed a development of 5.2 per cent from a fall of (-) 3 per cent.
Acuite Ratings & Research Chief Analytical Officer Suman Chowdhury stated: “India’s Industrial Production expanded by 11.9 per cent YoY in August 2021 with a gradual revival in industrial activity. However, the momentum of such revival has clearly dropped as evident from the slight sequential contraction in the index vis-a-vis the strong uptick seen in the months of June-July after the peak of the second Covid wave.”
“On the sectoral side, only electricity generation continued to show a sequential growth which also reflects an increased demand for power, leading to higher demand for coal as against relatively lesser supplies during the monsoon months.”
Emkay Global Financial Services Lead Economist Madhavi Arora stated: “IIP growth has remained steady in August. We expect demand for industrial output to improve on net ahead.” “However, supply constraints, both global n domestic and energy crisis could dent the production temporarily.”