Industrial production is soft for the second consecutive month, the growth rate of the manufacturing sector is 2 percent
The industrial production growth of the country has been soft for the second consecutive month. Its growth rate in October has been only 3.2 percent. The National Statistical Office released the Index of Industrial Production (IIP) data on Friday. This showed that the growth rate of the manufacturing sector in October 2021 has been 2 percent. The share of manufacturing sector in IIP is 77.63 per cent. The performance of mining and power sectors has been better than before. In this month, the output of the mining sector grew by 11.4 per cent and that of the power sector by 3.1 per cent.
According to the data, industrial production has been sluggish in October after September. In September it was 3.3 per cent and in October it came down to 3.2 per cent. For this, the effect of the low base effect is now believed to be decreasing gradually. In October 2021, the country’s index of industrial production stood at 133.7 points as compared to 129.6 points in the same period a year ago. Whereas in October 2019, this index was at 124 points.
Before this, in the four months from May to August, the growth rate of industrial production was continuously in double digits. For this also the reduction in the base of May-August 2020 has been an important reason. According to NSO data, IIP grew by 20 per cent in the first seven months of the current financial year, i.e. April-October, as against a fall of 17.3 per cent in the same period a year ago. In May 2021, it had increased at the rate of 27.6 percent.
The industrial production of the country has been affected since the outbreak of Kovid-19 epidemic. In March 2020, it had fallen to 18.7 percent. In April 2020, due to the strict lockdown across the country, industrial activities came to a halt to a great extent and there was a huge decline of 57.3 percent in industrial production. However, the growth rate in capital products fell to 1.1 per cent in October 2021 as against 3.2 per cent growth in the same period a year ago. It is considered a measure of investment.
Consumer durables declined by 6.1 per cent in October 2021, compared to an increase of 18.1 per cent in the same month a year ago. The production of non-durable consumer products has grown at the rate of 0.5 per cent in the month under review. Last year in the month of October of 2020, it had increased by 7.3 percent.