Industrial production declines 16.7% in March 2020 amid COVID-19 lockdown

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of March 2020 stand at 132.7, 114.8 and 149.2 respectively. 

Industrial production declines 16.7% in March 2020 amid COVID-19 lockdown
Image courtesy: Reuters

New Delhi: India's industrial output declined by 16.7 per cent in March, mainly on account of the poor show by mining, manufacturing and electricity sector due to the nationwide lockdown, according to National Statistical Office (NSO) data released on Tuesday (May 12).

Manufacturing sector output fell by 20.6 per cent compared to a growth of 3.1 per cent in the same month a year ago.

In view of the global COVID-19 pandemic and consequent nationwide lockdown measures implemented since March 2020, the data flow from the producing units was impacted. As some of these units are yet to resume operations, the response rate has been lower than usual. Consequently, the Quick Estimates are likely to undergo revision and will be incorporated in subsequent releases as per the revision policy of IIP, said the official statement.

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of March 2020 stand at 132.7, 114.8 and 149.2 respectively. 

As per use-based classification, the indices stand at 135.6 for Primary Goods, 76.4 for Capital Goods, 125.8 for Intermediate Goods, and 118.4 for Infrastructure/ Construction Goods for the month of March 2020. Further, the indices for Consumer durables and Consumer non-durables stand at 88.1 and 131.2 respectively for the month of March 2020.

Along with the Quick Estimates of IIP for the month of March 2020, the indices for February 2020 have undergone the first revision and those for December 2019 have undergone the final revision in the light of the updated data received from the source agencies. 

The Quick Estimates for March 2020 have been compiled at a weighted response rate of 73 percent, the first revision for February 2020 had a weighted response rate of 88 percent and the final revision for December 2019 had a weighted response rate of 94 percent, it said.

Notably, the Quick Estimates of Index of Industrial Production (IIP) is released on the 12th of every month with a six weeks lag and compiled with data received from source agencies, who in turn receive the data from the producing factories/ establishments.