India's IIP increased by 12.5% in a month
13 Jul 2022 14:55:55
New Delhi, Jul 13: The Index of Industrial Production (IIP) growth zoomed to 19.6% in May as against 7.1% in April, data released by the National Statistical Office showed on Tuesday. The manufacturing sector's output grew 20.6% in May this year. In May 2022, the mining output climbed 10.9%, and power generation increased 23.5%.
The IIP had grown by 27.6% in May last year, mainly due to the low-base effect.
Industrial production has been hit due to the Covid-19 pandemic since March 2020, when it had contracted 18.7%.
It shrank 57.3% in April 2020 due to a decline in economic activities in the wake of the lockdown imposed to curb the spread of Covid-19 infections. Industrial production had grown by 13% in August 2021. Thereafter, the IIP growth remained below 4.4% (in September) and touched the lowest level of 1% in November as well as December 2021. Meanwhile, retail inflation dropped marginally to 7.01% in June mainly due to a slight easing in food prices, though it still remained above the central bank's comfort level. The consumer price index (CPI) based on inflation stood at 7.04% in May and 6.26% in June last year. Inflation in the food basket in June 2022 was 7.75%, compared to 7.97% in the preceding month, as per the government data. The central bank has been asked to ensure that inflation remains at 4% with a margin of 2% on either side. Retail inflation is ruling above the RBI's upper tolerance limit of 6% since January 2022.
The Quick Estimates of IIP are released on the 12th of every month (or the previous working day if the 12th is a holiday) with a six-week lag. They are compiled from data received from source agencies, which in turn receive the inputs from the producing factories/ establishments.