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Industry output grows 11.5 in July on low-base effect, good performance by manufacturing, mining sectors

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The manufacturing sector, which constitutes 77.63 percent of the Index of Industrial Production (IIP), grew 10.5 percent in July, according to the data released by the National Statistical Office (NSO) on Friday.

Industry output grows 11.5 in July on low-base effect, good performance by manufacturing, mining sectors
Industrial production surged 11.5 percent in July mainly due to a low-base effect and good performance by manufacturing, mining and power sectors but the output remained slightly below the pre-pandemic level.
The manufacturing sector, which constitutes 77.63 percent of the Index of Industrial Production (IIP), grew 10.5 percent in July, according to the data released by the National Statistical Office (NSO) on Friday.
The mining sector output rose 19.5 percent in July while power generation increased 11.1 percent. In July 2021, the IIP stood at 131.4 points compared to 117.9 points in the same month last year. The index was at 131.8 points in July 2019, as per the NSO data.
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The data showed that industrial production recovered but was still slightly below the pre-pandemic level of July 2019. The IIP had contracted by 10.5 percent in July 2020.
Industrial production plunged 18.7 percent in March last year following the COVID outbreak and remained in the negative zone till August 2020. With the resumption of economic activities, factory output rose 1 per cent in September 2020 and grew 4.5 percent in October. In November 2020, the factory output fell 1.6 percent and then entered the positive territory with a 2.2 percent growth in December 2020. The IIP had recorded a contraction of 0.6 percent in January and 3.2 percent in February this year. In March, it grew 24.2 percent.
For the month of April, the NSO held back the release of complete IIP data. In May 2021, IIP rose 28.6 percent and in June, it grew 13.6 percent.
The second wave of the pandemic started in the middle of April this year and many states imposed restrictions to curb the spread of coronavirus infections. "The growth rates over the corresponding period of the previous year are to be interpreted considering the unusual circumstances on account of COVID-19 pandemic since March 2020," NSO said in a statement.
The government had imposed a nationwide lockdown to contain the spread of coronavirus infections on March 25, 2020. The manufacturing sector had recorded a contraction of 11.4 percent in July 2020. The mining sector output fell 12.7 percent in the same month last year. The electricity generation had declined 2.5 percent in July 2020.
The output of capital goods, which is a barometer of investment, grew 29.5 percent in July 2021. It had witnessed a contraction of 22.8 percent in the year-ago period. Consumer durables manufacturing increased 20.2 percent in the month under review whereas it was a decline of 23.7 percent in July 2020. Consumer non-durable goods production fell 1.8 per cent in July whereas it had grown 1.8 percent in the year-ago period.