Industrial growth, based on Index of Industrial Production (IIP), contracted sharply by 34.7 per cent in May, albeit it was lower than the contraction in April, indicting a graded pickup in industrial activity in the economy. The data, however, is not comparable with that of months preceding the COVID 2019 pandemic.
As per the data released by the Central Statistical Organisation (CSO), the IIP for the month of May 2020 stands at 88.4 as compared to 135.4 in the same month last year, registering a decline of 34.7 per cent.
In April 2020, the IIP contracted by 55.5 per cent to 53.6 versus 126.5 in the year-ago period 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, was not comparable with previous months.
"The Index for May 2020 stands at 88.4 as compared to 53.6 for April 2020, indicating a graded pickup in industrial activity in the economy," CSO said.
The indices of industrial production for the mining, manufacturing and electricity sectors stand at 87, 82.4 and 149.6, respectively, in May 2020.
"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 period of lockdown and the subsequent periods of conditional relaxations in restrictions," it added.