Updated: September 11, 2020 6:41:08 pm
IIP India Growth Rate Data July 2020: The index of industrial production (IIP) declined by 10.4 per cent to 118.1 in the month of July, according to the data released by the Ministry of Statistics & Programme Implementation (MoSPI).
The fall is primarily due to lower output in the manufacturing, mining and power generation sectors.
The IIP had grown 4.9 per cent in July 2019.
The industrial growth so far in the fiscal year 2020-21 (April-July) has contracted 29.2 per cent, compared to a 3.5 per cent rise in the corresponding period year ago, the data showed.
The steep fall in this year can be attributed to the nationwide lockdown which affected industrial work during April and May.
The manufacturing sector saw a contraction of 11.1 per cent on-year to 118.8 during the month of July, while the mining sector slipped -13.0 per cent to 87.2 and electricity sector witnessed a fall of 2.5 per cent at 166.3, the MoSPI data showed.
In July last year, the manufacturing sector had witnessed a growth of 4.8 per cent. During the same period, the mining sector had grown at 4.9 per cent and the electricity sector had witnessed a growth of 5.2 per cent, the data showed.
“In view of the preventive measures and announcement of nation-wide lockdown by the Government to contain spread of COVID-19 pandemic, a large number of the industrial sector establishments were not operating from the end of March, 2020 onwards. This has had an impact on the items being produced by the establishments during the period of lockdown,” the ministry said in its press release.
“With the lifting of restrictions in the subsequent periods, industrial activity is resuming. The Index for the month of July 2020 stands at 118.1 as compared to 54.0, 89.5 and 108.9 for April 2020, May 2020 and June 2020,” it added.
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