Industrial output shrinks by -16.7% in Mar 2020, lowest in 95 months: CSO1 min read . Updated: 13 May 2020, 02:27 PM IST
23 of the 23 industry groups included in the index were in the red.
India's factory output contracted by -16.7% in Mar 2020, down from 4.6% last month, according to new data released by the Central Statistics Office on Tuesday. In the same month last year, the output grew by 2.7%. The slowdown comes in large part due to decline in production of capital goods (-35.6%) and Consumer durables (-33.1%).
Factory output is measured by the Index of Industrial Production (IIP). IIP is a composite index that measures year-on-year change in the production output of selected industrial goods. The index is used to measure the level of monthly industrial activity in the Indian economy and forms a key input in estimating the Gross Value Added of the manufacturing sector for quarterly GDP calculations.
Manufacturing, which contributes over 77% to the IIP figures, shrank by -20.6% compared to 3.1% in Feb 2020. Mining contributes around 14%, and expanded by 0.0% as against 9.7% in Feb 2020, and the electricity sector (8% of IIP) shrank by -6.8% compared to 11.5% in Feb 2020.
23 of the 23 industry groups included in the index were in the red, meaning that they contracted in Mar 2020 compared to the corresponding month last year.
Among the 23 sub-sectors within manufacturing, coke and refined petroleum products had the highest growth at -1.8%, followed by beverages (-6.4%) and food products (-10.5%).
On the other hand, motor vehicles, trailers and semi-trailers had the highest decline of -49.6%, followed by other manufacturing (-44.7%) and computer, electronic and optical products (-41.7%).