Slow pace of industrial production continues for the third month, only 1.4 percent increase in November
Due to the problems arising out of Coronavirus and the long lockdown, the country’s Industrial Production The slowdown in the pace of (Industrial Production) growth continued for the third consecutive month. It is evident from this that there has been an increase of only 1.4 per cent in November, 2021. The main reason for the slowdown in industrial production is the elimination of the effect of a weak comparative base. However, the performance of the mine sector has been better. According to the data released by the National Statistics Office on Wednesday, the manufacturing sector, which accounts for 77.63 per cent of the Index of Industrial Production, grew by 0.9 per cent in November as compared to a fall of 1.6 per cent in November 2020.
According to the data, mineral production increased by 5.0 percent and electricity production by 2.1 percent. In November 2020, mining sector output declined by 5.4 per cent, while electricity generation grew by 3.5 per cent. Industrial production grew by double digits between May and August in the current financial year. Thereafter, it declined to 3.3 per cent in September and 4 per cent in October, mainly due to the weakening of the weak comparative base. According to the NSO data, the IIP in November, 2021 stood at 128.5 points as against 126.7 marks in the same month of 2020. The index stood at 128.8 points in November, 2019. Industrial production declined by 1.6 percent in November 2020. Industrial production grew by 17.4 per cent during April-November in the current financial year, as compared to a decline of 15.3 per cent in the corresponding period of the previous financial year 2020-21.
As far as industrial production is concerned, it came back on track in September 2020 and crossed the pre-epidemic level in September 2019. There was an increase of one percent in IIP in September 2020. Industrial production was affected due to the corona virus epidemic that started in March 2020. At that time it had fallen by 18.7 percent. It remained in negative range till August 2020. With the commencement of economic activities, it had increased by one per cent in September 2020 and by 4.5 per cent in October. It again declined by 1.6 percent in November, 2020 and after that it increased by 2.2 percent in December, 2020. IIP declined by 0.6 per cent in January 2021 and by 3.2 per cent in February. Again in March it increased by 24.2 percent. NSO did not release the IIP data in April 2021 due to the second wave of the pandemic.
IIP grew by 27.6 percent in May 2021 and 13.8 percent in June. In July and August, it stood at 11.5 per cent and 13 per cent, respectively. According to NSO data, the capital goods sector’s output, which shows investment status, declined by 3.7 per cent in November 2021. It had fallen by 7.5 percent a year ago. The production of consumer durables declined by 5.6 per cent in the month under review as against a decline of 3.2 per cent in November 2020. The production of non-durable consumer goods grew by 0.8 per cent in November 2021 as against a decline of 0.7 per cent a year ago.
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