After registering two consecutive months of growth, India’s factory output or Index of Industrial Production (IIP) contracted 1.9 percent for November 2020 mainly due to poor showing by manufacturing and mining sectors. Industrial production of the country had grown at 3.6 per cent in October 2020 and 2.1 per cent in November 2019. Meanwhile, the IIP growth for October has been revised upwards to 4.9 per cent from last month's provisional estimates of 3.6 per cent. The data released by the National Statistical Office (NSO) under Ministry of Statistics and Programme Implementation showed that for the month of November 2020, the Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 stood at 126.3.
The manufacturing sector -- which constitutes 77.63 per cent of the IIP -- recorded a contraction of 1.7 per cent in November 2020. Mining sector output too witnessed a decline, shrinking 7.3 per cent. However, power generation grew 3.5 per cent in the month under review. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of November 2020 stand at 104.5, 128.4 and 144.8 respectively. The IIP for the April-November period has contracted by 15.5 per cent, according to the data. It had registered a flat growth of 0.3 per cent during the same period last fiscal.
The output of capital goods, which is a barometer of investment, fell by 7.1 per cent in November 2020 as against a contraction of 8.9 per cent earlier. Consumer durables output fell by 0.7 per cent, compared to 1.4 per cent contraction in November 2019. Consumer non-durable goods production fell by 0.7 per cent, compared to a growth of 1.1 per cent a year ago. As per Use-based classification, the indices stand at 121.3 for Primary Goods, 84.6 for Capital Goods, 136.7 for Intermediate Goods and 135.5 for Infrastructure/ Construction Goods for the month of November 2020. Further, the indices for Consumer durables and Consumer non-durables stand at 115.9 and 149.1 respectively for the month of November 2020.
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