Since the second wave of corona has stopped, there has been a huge increase in the Industrial Production Index (IIP) rate since the start of industrial activity in the country. According to figures released by the government on Monday, the IIP increased by 29.3 per cent in May. According to the report, this growth was recorded due to industrial activity and demand generation in the domestic and international markets. According to the National Statistical Office (NSO), manufacturing sector output increased by 34.5 per cent in May 2021.
At the same time, mining output increased by 23.3 per cent and electricity generation by 7.5 per cent. Notably, in May 2020, there was a 33.4 percent decline in IIP. Industrial output was badly affected by the corona epidemic last March, resulting in a 18.7 percent decline. In April 2020, it was reduced to 57.3% due to locks to prevent coronavirus infection. The growth rate of industrial production was 5.2 per cent in February last year.
In April last year, there was a 57.3% decline
The lockdown was imposed in the last days of March last year to prevent the spread of Kovid-19. This resulted in a sharp decline of 57.3% in industrial production. In May, the decline was 33.4 per cent. However, the situation improved with the opening of the lockdown.
A small relief on the inflation front, retail inflation fell to 6.26 per cent in June
Which zones are involved
Capital goods include machinery, consumer durable fabrics, passenger vehicles, etc. Infrastructure goods include paint, cement, cables, bricks, tiles, railroads, etc. Non-consumer goods include foodstuffs, medicines, etc., but primary commodities include mining, electricity, fuel and fertilizers. Intermediate goods include threads, chemicals, semi-finished steel materials, etc.
What is Industrial Production?
As the name suggests, the number of industries produced is called industrial production. It covers three main areas. The first is manufacturing, ie automotive, textile, steel, cement, etc. The second is mining, which produces coal and minerals, and the third is utilities such as roads, dams and bridges. Anything they produce together is called industrial production.