India Industrial Production

A sharp contraction in Industrial output in March, indicates that worst is yet to come.

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

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

Recent Data Trend

One week of lockdown in the month of March proved extremely costly for India's industrial production, with its growth contracting 16.7% YoY, a record low, in March. A nationwide lockdown, along with a complete shutdown on the business of non-essential items due to government restrictions, resulted in a sharp decline in demand and activity in these industries. The fall in output is seen across all the industries with manufacturing recording it's sharpest decline of 20.6% YoY in March.

As per used-based classification, the production of capital goods, consumer durables, and intermediate goods saw the steepest decline of 35.6% YoY, 33.1% YoY, and 18.5% YoY, respectively.

Industrial production, which saw episodes of negative growth in the last seven months, began to show signs of recovery in February by posting a seven-month high growth of 4.6% YoY. But once the COVID-19 pandemic became severe, it purged any chance of recovery that the industrial sector could show. As April will be the first month in which there was a complete lockdown for the entire period, the industrial production will likely see a further contraction.

 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