India Industrial Production

Lockdown knocks India's industrial production to a record low of 55.5% YoY in April, 2020.

Published monthly by Ministry of Statistics and Programme Implementation(MOSPI). Updated till April 2020 (Published on June 12th, 2020).

Note: The MoM% has been calculated over the seasonally-adjusted series.

Recent Data Trend

The growth in India's industrial output contracted to a record low at 55.5% year-on-year (YoY) in April, 2020 compared to -18.3% YoY growth in the pervious month. The contraction seen in April, 2020 has been the worst since the start of 2011-12 IIP series. India's nation-wide lockdown throughout April,2020, wherein, a shutdown in business activities in majority of industries was seen, impacted  items being produced and created a massive loss for industries. Although the government eased restrictions only for some industries, the activities in these industries too seem to have been constrained.

Among the three key sectors, ie, manufacturing, mining and electricity the worst hit was the manufacturing sector. Manufacturing output growth contracted 64.3% YoY in April, 2020 compared to a contraction of 20.6% YoY in March, 2020. All the 23 industrial groups within manufacturing sector recorded a fall in production. Even the Purchasing Mangers' Index (PMI) for manufacturing dropped to a record low of 27.4 in April from 51.8 in March 2020 as the lockdown to contain the Covid-19 pandemic forced businesses to shut down. Mining and electricity sectors also saw a sharp decline compared to March.

The fall in growth of industrial production comes even from a broad-based contraction in the user-based classification of IIP. Capital goods, construction goods and consumer durables were severely impacted. Growth in infrastructure and construction goods recorded a notable contraction of 83% YoY in April, 2020. This has been on account of the restrictions in employing labourers for construction work.

With continuation of lockdown measures, even though some relaxations in the month of May, 2020 was seen, the negative growth in industrial output can continue. Going forward, depending on the recovery in supply chains, performance in terms of growth in industrial production will follow.

 Brief Overview

Index of Industrial production is published by the Ministry of Statistics and Programme Implementation every month. The current base year of the index is 2011-12=100. The index shows the changes in the production volume of different industrial commodities. The sub-components of IIP are- Mining, Manufacturing, and Electricity. The IIP is also classified according to its use namely, Primary Goods, Capital Goods, and Intermediate Goods. It is an essential measure of growth as it records the level of industrial activity in the economy.

For more information visit the official government website

IIP- Use based classification

Industrial Production-Quarterly

Note: The QoQ% has been calculated over the seasonally-adjusted series.

Industrial Production-Annual

Next release date: June 12th, 2020