The industrial growth, based on Index of Industrial Production (IIP), contracted sharply by 55.5 per cent in April as majority of the industrial sector remained closed in wake of nationwide lockdown by the government to contain spread of COVID-19 pandemic. The data, however, is not comparable with previous months and the figures will be revised in the following months.
The government has not released the retail inflation numbers for May due to the coronavirus lockdown. This is the second month in a row as the government had not released retail inflation, calculated on the basis on Consumer Price Index, for the month of April too.
"In view of the preventive measures and announcement of nation-wide lockdown by the government to contain spread of COVID-19 pandemic, majority of the industrial sector establishments were not operating from the end of March, 2020 onwards. This has had an impact on the items being produced by the establishments during the month of April, 2020, where a number of responding units have reported NIL production. Consequently, it is not appropriate to compare the IIP of April, 2020 with earlier months and users may like to observe the changes in IIP in the following months. These Quick Estimates will undergo revision in subsequent releases as per the revision policy of IIP," the Ministry of Statistics and Programme Implementation (MoSPI) said.
For the month of April 2020, the quick estimates of IIP (base 2011-12) stand at 56.3. The indices of output for the mining, manufacturing and electricity sectors stand at 78.3, 45.1 and 126.1, respectively, the ministry said.
"Due to the lockdown there has been a contraction and shrinkage in coal, manufacturing and electricity production leading the IIP index to sharply fall to 56 in April," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
As per use-based classification, the indices stand at 92.3 for primary goods, 7.7 for capital goods, 42 for intermediate goods and 21.7 for infrastructure or construction goods during the month under review. Further, the indices for consumer durables and consumer non-durables stand at 5.5 and 89.4, respectively, for the month of April.
"Along with the Quick Estimates of IIP for the month of April 2020, the indices for March have undergone the first revision and those for January have undergone the final revision in the light of the updated data received from the source agencies," the ministry said.
The estimates for April have been compiled at a weighted response rate of 87 per cent, the first revision for March 2020 at a weighted response rate of 85 per cent and the final revision for January 2020 at a weighted response rate of 93 per cent, it added.
By Chitranjan Kumar