With contraction in manufacturing, India’s industrial production fell to a 10-month low of 0.4 per cent in December 2021. The Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 stood at 138.0 for the month of December 2021. The Index of Industrial Production (IIP) had grown by 2.2 per cent in December 2020. The IIP growth for November 2021 was revised downwards to 1.3 percent from the provisional estimate of 1.4 percent released last month. During April-December this fiscal, the IIP grew by 15.2 percent against a 13.3 percent contraction in the same period last year.
The biggest drag for the industrial output in December came from the 0.1 per cent contraction in manufacturing output, which accounts for 77.6 per cent of the weight of the IIP. Manufacturing output had grown 0.8 per cent in the previous month and 2.7 per cent a year ago. Mining output grew 2.6 per cent in December as against a growth of 4.9 per cent a month ago and 3 per cent contraction a year ago. Electricity output recorded a growth of 2.8 per cent in December compared with 2.1 per cent a month ago and 5.1 per cent a year ago. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of December 2021 stand at 120.3, 138.8 and 162.5 respectively.
Capital goods, an indicator of investment, contracted 4.6 per cent in December as against a contraction of 2.0 per cent a month ago and 2.2 per cent growth a year ago. Consumer durables output contracted 2.7 per cent in December as against 5.4 per cent contraction a month ago and 6.5 per cent growth a year ago, while consumer non-durables output contracted 0.6 per cent compared with 0.5 per cent growth a month ago and 1.9 per cent growth a year ago. As per Use-based classification, the indices stood at 133.7 for Primary Goods, 91.4 for Capital Goods, 150.7 for Intermediate Goods and 153.5 for Infrastructure/ Construction Goods for the month of December 2021. Further, the indices for Consumer durables and Consumer non-durables stood at 121.5 and 160.2 respectively for the month December 2021.
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