India's Industrial Output In May Falls 8% Over April

Workers labor at the Innova Crysta compact multi-purpose vehicle (MPV) production line at the Toyota Kirloskar Motor Ltd. plant in Bidadi, Karnataka, India, on Wednesday, Sept. 9, 2020. Photographer: Dhiraj Singh/Bloomberg

India's Industrial Output In May Falls 8% Over April

India’s industrial output continued to moderate in May led by the impact of the second wave of Covid infections.

The Index of Industrial Production fell 8% in May over the previous month as localised lockdowns curtailed activity. Over a year ago, when a nationwide lockdown was in place, industrial output was higher by 23.9%, according to data released by the Ministry of Statistics and Programme Implementation on Monday.

Thirty three economists polled by Bloomberg had forecast 32% growth in industrial output in May compared to a year ago.

Sectoral Estimates

Among the three key sectors, manufacturing and electricity saw a fall in output, while mining activity held steady.

  • Mining output rose marginally by 0.5% in May compared to April.

  • Manufacturing output fell 9.6% month-on-month.

  • Electricity output fell by 6.9% in May over April.

Industrial output, as classified by the end-use of goods, indicated a contraction across industries.

  • Primary goods output contracted 2.9% month-on-month.

  • Capital goods output fell 18%.

  • Intermediate goods output declined by 6.7% on a monthly basis.

  • Infrastructure and construction goods output saw a decline of 8.1%.

  • Consumer durables output dropped by 27.7% from last month.

  • Consumer non-durables output contracted by 3.7% on a month-on-month basis.

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