Industrial production (IIP) grows 11.9 per cent in August, shows recovery on firm footing

New Delhi, Oct 12 (UNI) The Index of Industrial Production (IIP) rose 11.9 per cent year-on-year in August, 2021 as compared to 11.5 per cent in July showing economic recovery on firm footing post second wave of pandemic.
As per data released by Ministry of Statistics & Program Implementation (MoSPI), mining sector recorded 23.6 per cent jump in August while manufacturing grew by 9.7 per cent. Electricity sector posted 16 per cent growth during this period.
The IIP had recorded a negative growth of 7.1 per cent in August 2020 as Coronavirus had considerable impact on economic activities.
ICRA Chief Economist said that IIP expansion was on expected lines driven by the positive impact of subdued rainfall on mining and electricity.
“In terms of the use-based categories, the improvement was limited to primary goods and consumer non-durables, with all the other categories reporting a moderation in the YoY growth in August 2021 relative to July 2021,” she said.
“In month-on-month terms, the IIP declined in August 2021, led by mining and manufacturing, although infra/construction goods and consumer non-durables displayed a pickup,” she added.
Nayar said that with the excess rainfall affecting mining, electricity and construction activities, and the non-availability of semiconductors impinging upon auto output, she expects the IIP growth to dip sharply to 3-5 per cent in September 2021.
“Subsequently, the healthy GST e-way bill generation for early October 2021 suggests inventory buildup ahead of the festive season, which augurs well for the IIP print for the current month, even as continued constraints in the auto sector and the looming concerns on availability of coal and power pose risks,” she noted.
On cumulative basis, industrial production registered 28.6 per cent rise in April-August as against a decline of 25 per cent in the same period last year.