India Industrial Production

India's industrial production contracted in May, albeit at a slower pace.

Published monthly by Ministry of Statistics and Programme Implementation(MOSPI). Updated till May 2020 (Published on July 10th, 2020).

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

Recent Data Trend

The index of industrial production continued to see a broad-based contraction in May, albeit at a slower pace. It contracted by 34.7% YoY compared to a record low decline of 57.6% YoY in April, implying that the overall industrial activities were hurt by the precautionary lockdown and the spillover effect of weak demand in the economy.

Among the three key sectors (i.e., manufacturing, mining, and electricity) though manufacturing continues to be the worst-hit sector, it fared batter than the previous month. It saw a 39.3% contraction in May compared to a contraction of 67.1% YoY in April. All the 23 industrial groups within the manufacturing sector recorded a negative growth except for the pharmaceuticals sector, which recorded a positive growth of 2.5% YoY. Which is self-evident, given the daily rise in the rate of infection in India.

Similar to the previous month, the industrial output as per used-based classification saw an across the board contraction. The production of consumer durables (-68.5% YoY) and capital goods (-64.5% YoY) suffered some of the largest losses in May.

Now that the government has eased the economic restrictions and as long as it doesn't order complete lockdowns again, the industrial activities may start to recover, although slowly. The purchasing manager index (PMI) for manufacturing, which improved to 47.2 in June 2020 from 30.8 in May, also indicates the same.

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: August 12th, 2020