IndiPosted at: Aug 12 2021 9:01PM Factory output rises 13.6pc in June on low base
New Delhi, Aug 12 (UNI) Helped by a favourable base, India’s factory output registered 13.6% year-on-year growth in June this year.
Measured by the Index of Industrial Production (IIP), the factory output had been in the negative zone till February but logged high growth since March due to low base as a result of nationwide lockdown last year to contain coronavirus.
The IIP for the mining, manufacturing and electricity sectors for the month of June 2021 stand at 105.5, 121.0 and 169.1 respectively, as per data released by the Ministry of Statistics & Programme Implementation (MoSPI).
With the gradual lifting of restrictions by the states, the IIP recorded a sequential uptick of 5.7% in June 2021, led by manufacturing (7.4%), while remaining subdued relative to the April 2021 level, highlighting that the recovery was far from complete.
"Interestingly, the sequential rise in manufacturing in June 2021 (7.4%) was muted as compared to the sharp pickup in the generation of GST e-way bills (36.8%) in that month, just as the month-on-month fall in the manufacturing index in April 2021 and May 2021 had been narrower than the decline in the e-way bills,"said Aditi Nayar, Chief Economist at ICRA.
"This confirms that manufacturing activity was less affected by the second surge, than the movement of goods across the country, suggesting that the sequential trend in GST e way bills may not always be a good lead indicator of the IIP," she added.
For Q1 FY2022 as a whole, the IIP recorded a base-effect led YoY expansion of 25.3%, while remaining 6.6% lower than the pre-Covid level of Q1 FY2020, chiefly reflecting the impact of the second wave of Covid-19 on manufacturing.
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