The Index of Industrial Production report is out and the numbers, measured during the recovery stage from the havoc wreaked on industries by the pandemic, have only seen a marginal improvement. Calculated against the base year reference numbers of 2011-2012, these help gauge a month-on-month and year-on-year development in the industries in India.
What is the IIP Report?
The Index of Industrial Production is a monthly exercise undertaken by the Central Statistical organisation to track the growth of various industries in the economy.
What does the latest IIP Report look like for India?
Industrial production in simple terms refers to the output generated by factories in the country. According to the IIP data, in October, industrial production was at 3.2%. This is low from last year's 4.5% of the manufacturing output, which makes up almost 77% of the industrial production, around the same time. However, compared with the last few months, this is actually an improvement on the hit that industries in India had taken this year.
What does it say about the status of investment in the country?
The IIP measures investment rates in the country by calculating the output of capital goods. These numbers are down alarmingly to a degrowth of 1.1% when they had registered a growth of 3.2% last year in October.
How do other sectors fare?
Well apart from mining which grew at 11%, and primary goods, all other sectors such as consumer durables and non-durables, manufacturing and infra goods have all taken a hit.
Which industry has suffered the most?
The pandemic has put a lot of processes out of place globally, and with the manufacturing of chips taking a hit, sectors such as the auto industry have suffered great losses.
