India’s industrial production up 13.6% in June due to low base effect
13 Aug 2021
Industrial production in the country expanded by 13.6 per cent year-on-year in June 2021, gaining from a low base effect as industrial production had almost reached a standstill for most of last year.
Industrial production based on the index of industrial production had increased by 28.6 per cent rise in May and a massive 134 per cent rise in April.
When compared with May 2019, however, industrial output showed a contraction of 13.4 per cent.
The indices for the months in 2021 are not strictly comparable with the same months of 2020, when the nationwide lockdown was in full force and a majority of factories were shut.
In June, manufacturing sector output saw an increase of 13 per cent after rising by 34.5 per cent in May and a near 200 per cent spurt in April. Compared to June 2019, manufacturing output shrank 16.4 per cent.
In June, 17 of the 23 sub-sectors within manufacturing posted a year-on-year growth. However, production of pharmaceuticals and medicinal chemicals saw a contraction in June.
Production in the capital goods sector rose by 25.7 per cent in June, down from 78.2 per cent in May. This was a massive 1,077 per cent in April, up from 41.9 per cent in March.
Consumer non-durables was the worst affected sector in June 2021.
Cumulative growth of industrial production in the first quarter (April-June 2021-22 ) stood at 45 per cent, against the 35.6 per cent contraction in the first quarter of FY21.