India’s Industrial Production Contracts By 16.7 Per Cent In March Following Covid-19 Pandemic, Lockdown

India’s Industrial Production for the month of March witnessed a record contraction of 16.7 per cent for the month of March as a result of Nationwide Lockdown which was imposed from 25 March.

The Index of Industrial Production (IIP) had grown by 4.5 per cent in February and 2.7 per cent in March 2019.

As per a Livemint report, the National Statistical Office (NSO) data shows that the manufacturing sector output contracted by 20.6 per cent in March and electricity generation shrank by 6.8 per cent. Both the sectors had grown by 3.1 per cent and 2.2 per cent in March 2019.

Ministry of Statistics and Programme Implementation attributed the fall in growth to the global Covid-19 pandemic and the nationwide lockdown which was announced subsequently.

“In view of the global Covid-19 pandemic and consequent nationwide lockdown measures implemented since March, 2020, the data flow from the producing units was impacted. As some of these units are yet to resume operations, the response rate has been lower than usual. Consequently, the Quick Estimates are likely to undergo revision and will be incorporated in subsequent releases as per the revision policy of IIP”, reads the statement.