Industrial Production grows at its highest level

13/07/2022

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Industrial Production grows at its highest level

Team Ambitiousbaba are here with a Current Affairs Special Series. In this series, candidates will be introduced to current affairs topics daily, which will not only improve their general awareness but also will ensure that the candidates do not lack in any current affairs topic. Today’s Current Affairs topic is “Industrial Production grows at its highest level“

The Ministry of Statistics and Programme Implementation released data on the Index of Industrial Production (IIP) which shows that India’s industrial growth has soared up to 19.6 percent in May from 7.1 percent in April.

With an advantage of favorable base effect, the industrial growth rate of May at 19.6 percent is the highest in one year. IIP growth in May 2021 was 27.6 percent.

The expectation of Economists is that Industrial growth climbed up sharply from April’s 7.1 percent because of a low base. In the year-ago period, the IIP was registering sharp sequential falls – from 145.6 in March 2021 to 115.1 in May 2021 – as the country was plunged by the second wave of the corona virus pandemic which resulted to the re-imposition of restrictions on movement and activity in several regions.

Gap of one year in calculation:

The statistics ministry stated the growth rates over corresponding period of previous year are to be interpreted “considering the unusual circumstances on account of COVID 19 pandemic since March 2020”.

Sectoral wise growth:

All three sectors mining, manufacturing, and electricity have experienced a sharp improvement in output growth due to low base effect. The same was happened for all types of goods under the use-based classification, except consumer non-durables.

Production of consumer non-durables grew 0.9 percent in May against 0.3 percent growth in April.

Barclays attributed the spike in May IIP to the low base effect as well as resilient activity.