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Monday, June 14, 2021

Curbs hit Apr industrial output, IIP dips over Mar

Comparing the output levels, the data showed that the industrial output in April 2021 is 94.3 per cent of the output seen in February 2020 and 100.1 per cent as against output of April 2019.

By: ENS Economic Bureau | New Delhi |
Updated: June 12, 2021 1:42:50 am
The IIP was at 54 in April 2020 and 126.5 in April 2019.

The Index of Industrial Production (IIP) slowed to 126.6 in April from 145.5 in March, reflecting the impact of the localised lockdowns across the country against the second Covid-19 wave, data released by the National Statistical Office (NSO) on Friday showed.

The IIP was at 54 in April 2020 and 126.5 in April 2019. The industrial output had contracted by 57.3 per cent in April last year. The NSO refrained from giving the data in percentage terms — providing only the value of indices — citing that “many units … reported ‘Nil’ production, affecting comparison of the indices for the months of April 2020 and April 2021.”

Comparing the output levels, the data showed that the industrial output in April 2021 is 94.3 per cent of the output seen in February 2020 and 100.1 per cent as against output of April 2019.

In percentage terms, industrial activity showed a rise of 134.4 per cent this April — primarily due to severe low base effect — from April 2020 when a nationwide lockdown was imposed to counter the spread of the pandemic.

“This clearly shows that some of the ground that industrial output had covered in March 2021 by going past the production levels witnessed during the pre-lockdown month of February 2020 has again been lost in April 2021. This was expected due to the regional /partial lockdown imposed in the different parts of the country due to the second wave of Covid infections,” Sunil Kumar Sinha, principal economist, India Ratings & Research (Ind-Ra).

The Centre had, on March 25, 2020, enforced a nationwide lockdown to curb the spread of Covid.

Explained

Y-o-y rise in April due to low base

Though the NSO refrained from giving data in percentage terms, a comparison of output levels showed industrial activity rising 134.4% this April — mainly on severe low base effect — from April 2020 when a nationwide lockdown was imposed.


This year, the second wave of the pandemic began in the middle of April, which hit production in factories due to local curbs.

At broad-based classification, the manufacturing, electricity and mining output came in at 93.2 per cent, 113.2 per cent and 87.6 per cent of the pre-Covid period. Further, at the use-based classification of primary, capital, intermediate, infrastructure, durable and non-durable goods, the output in April 2021 was 96.7 per cent, 84.6 per cent, 94.6 per cent, 93.0 per cent, 95.8 per cent and 92.8 per cent of pre-Covid levels.

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