Business

Industrial production rises to 11.9% in August on lower base effect

October 12, 2021
Bharat Times

IIP data: Industrial production up 11.9 percent in August 2021

Industrial production grew 11.9 percent in August 2021 from a year earlier, government data showed on Tuesday, October 12. Last year, a correction was recorded as a result of the Aadhaar effect due to the pandemic that hit economic activity.

Industrial production in August 2021: Here’s everything you need to know

  1. The Index of Industrial Production (IIP) stood at 131.1 in July. The Index of Industrial Production during the April-August period of the current financial year rose by 28.6 per cent as compared to a fall of 25 per cent in the year-ago period. (Read also: Core industries grow 11.6% in August 2021 )

  2. The indices for manufacturing, mining and power sectors for August 2021 are 130.2, 103.8 and 188.7 respectively, according to industrial production data released today by the Ministry of Statistics and Program Implementation.

  3. Industrial production – or factory output estimated by the Index of Industrial Production, grew 11.5 percent in July 2021 due to a lower base effect. (Read also: Industrial production rose to 11.5% in July on the following base effect: All you need to know )

  4. The manufacturing sector, which comprises 77.63 per cent of the Index of Industrial Production, grew 9.7 per cent in August. Mining output also increased by 23.6 percent and electricity by 16 percent.

  5. The output of the country’s eight core sectors – also known as infrastructure production – grew 11.6 percent in August 2021, according to government data released on September 30.

  6. The eight core industries account for 40.27 percent of the weight of the goods included in industrial production or IIP. Growth in infrastructure production was led mostly by the coal, natural gas, refinery products, steel, sectors.

  7. “IIP is still showing a contraction of around five per cent if we compare it with the pre-COVID levels of August 2019. However, with economic activity moving towards normalization in the next few months, IIP is expected to improve as reflected. by many other high frequency economic indicators,” said Ms. Rajni Sinha, Chief Economist and National Director – Research, Knight Frank India

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