IIP contracts for second straight month in May; Govt says data not comparable

In view of the impact of the coronavirus-induced lockdown, the government has held back the release of complete industrial production data for the second straight month in May. The Ministry of Statistics and Programme Implementation has released quick estimates of the Index of Industrial Production (IIP) which showed the index value at 88.4 in May 2020 against 135.4 in May 2019, indicates contraction. However, the index value for May against 53.6 in April 2020, indicates a graded pickup in industrial activity.

The ministry did not provide any comparable percentage data while noting that it is not appropriate to compare the IIP data with earlier months due to COVID-19 lockdown. The IIP data comes with a lag of six weeks. The number of units responding has improved in May 2020 as compared to the earlier months of lockdown. The weighted response rate at time of Quick Estimate (QE) of April 2020 was 87 percent which is now revised upwards to 91 percent at first revision.

The IIP for the month of May 2020 stands at 88.4. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of May 2020 stood at 87.0, 82.4 and 149.6 respectively. The Quick Estimates will undergo revision in subsequent releases as per the revision policy of IIP. As per Use-based classification, the indices stand at 105.5 for Primary Goods, 37.1 for Capital Goods, 77.6 for Intermediate Goods and 84.1 for Infrastructure/ Construction Goods for the month of May 2020. Further, the indices for Consumer durables and Consumer non-durables stand at 42.2 and 132.3 respectively for the month of May 2020.