The National Statistical Office (NSO) released the Index of Industrial Production (IIP) data on Friday. This showed that the growth rate of the manufacturing sector in October 2021 was 2 percent. The share of manufacturing sector in IIP is 77.63 per cent.
However, the mining and power sectors have performed better. Mining sector output grew by 11.4 per cent and power sector output by 3.1 per cent in this month.
According to the data, industrial production has been sluggish in October after September. It stood at 3.3 per cent in September and came down to 3.2 per cent in October. For this, the effect of the low base effect is now believed to be decreasing gradually.
The country’s index of industrial production stood at 133.7 in October 2021 as against 129.6 in the same period a year ago. Whereas in October 2019, this index was at 124 points.
Earlier, in the four months from May to August, the growth rate of industrial production was in double digits. For this also the reduction in the base of May-August 2020 has been an important reason.
According to NSO data, IIP grew by 20 per cent in the first seven months of the current financial year i.e. April-October as against a fall of 17.3 per cent in the same period a year ago. It had grown at a rate of 27.6 per cent in May 2021.
The country’s industrial production has been affected since the outbreak of the Covid-19 pandemic. It had fallen to 18.7 per cent in March 2020.
At the same time, in April 2020, due to strict lockdown across the country, industrial activities came to a halt to a great extent and there was a huge decline of 57.3 percent in industrial production.
However, growth in capital products fell to 1.1 per cent in October 2021 from 3.2 per cent in the same period a year ago. It is considered a measure of investment.
Consumer durables declined by 6.1 per cent in October 2021. Whereas in the same month a year ago, it had increased by 18.1 percent.
However, the production of non-durable consumer products grew at the rate of 0.5 per cent in the month under review. Last year in the month of October 2020, it had increased by 7.3 percent.