INSUBCONTINENT EXCLUSIVE:
IIP Data: Industrial production stood at 3.1 per cent in September 2021
Industrial
production stood at 3.1 per cent in September 2021, government data showed on Friday, November 12, as a result of waning low base effect due
to the pandemic that affected economic activity last year
Industrial production rose to 11.9 per cent in August 2021 - for the second consecutive month
The index of industrial production (IIP) in September stood at 127.9
The industrial production index during the April-August period of the current fiscal grew 23.5 per cent, compared to a de-growth of 20.8 per
cent in the year-ago period.The indices for the mining, manufacturing, and electricity sectors for September 2021 stand at 95.1, 129.9 and
167.9, respectively, according to the industrial production data released by the Ministry of Statistics and Programme Implementation
today.Industrial production - or the factory output, gauged by the industrial production index, slipped to 3.1 per cent in September,
compared to 11.9 per cent in August - due to low base effect
While industrial production rose to 3.1 per cent in September, compared to one per cent in the year-ago period.The manufacturing sector,
which comprises 77.63 per cent of the index of industrial production, grew 2.7 per cent in September
The mining output also climbed 8.6 per cent and electricity grew by 0.9 per cent.The output of capital goods - a barometer of investment,
grew 1.3 per cent in September, compared to a de-growth of 1.2 per cent in August 2020
Consumer durables registered a de-growth of two per cent, compared to a growth of 5.3 cent in the year-ago period.Consumer non-durable goods
also registered a de-growth of 0.5 per cent in September 2021, compared to a growth of 2.4 per cent in the year-ago period.Separate
government data on Friday showed that the retail inflation in October 2021 rose to 4.48 per cent from 4.35 per cent in September, on rise in
fuel prices, with the food inflation at 0.85 per cent.The country's output of the eight core sectors - also known as the infrastructural
output, grew 4.4 per cent in September 2021, according to government data released on October 29.The eight core industries consist of 40.27
per cent of the weight of items that are included in the industrial output or the IIP
The growth in the infrastructure output was mostly led by the natural gas, coal, and cement sectors."While the sharp deceleration in IIP
growth is mainly because of the base effect, even on a sequential basis the IIP has shown a decline and this is a cause of concern
While the infrastructure sector has shown a sequential decline, the silver lining is that on a MoM basis the consumer goods segment,
specifically the consumer durables sector has shown a strong improvement,'' said Ms
Rajani Sinha, Chief Economist - National Director - Research, Knight Frank India.
