IIP edged up 0.08% in April same month in 2019
#GS3 #ECONOMY #IIP #REPORT #FINDINGS
According to the most recent Index of industrial Production (IIP) data released by the National Statistical Office, India’s April industrial output edged up 0.08%, from the extent recorded during an equivalent month in 2019.
- The NSO observed that the IIP data wasn't comparable the year-earlier figures;
- As the majority of the establishments didn't operate in April 2020’ as a results of the nationwide lockdown imposed to curb the spread of COVID-19 infections.
- The manufacturing sector, hit hardest by last year’s national lockdown, posted a 0.9% decline in comparison with April 2019.
- Economists stated that the IIP data needed to be seen in perspective, given the impact of the second wave.
Purchasing Manager Index (PMI), e-way bills:
- It would be better to trace PMI, e-way bills and GST collections to urge a good assessment of activity within the industrial sectors.
- Electricity output was 6.81% above the pre-COVID-19 levels of April 2019.
- Similarly, mining output was 0.2% above the same month in 2019.
- According to the ICRA, capital goods and consumer durables output trailed the April 2019 levels by 14.3% and 11.6%, respectively.
- It suggests that the widening State-wise restrictions that were imposed during the month impacted production amid a weakening outlook for investment activity and consumption.
- Manufacturing moderated by 12.6% in April from the previous month, narrower than the slippage of 17.5% within the GST e-way bills generated over a similar period of time .
- This suggests that inventories may have built up, with dispatches being limited by the second COVID surge that was underway in April.
- On a sequential, month-on-month basis, April’s IIP contracted over 12%.
- It was reflecting successful on production activity as major industrial hubs were under lockdown.
- Maharashtra has an 18% share in India’s manufacturing Gross Value Added (GVA).
Purchasing Manager Index (PMI):
Index of industrial Production (IIP):
Significance of IIP
SOURCE: THE HINDU