Digital Desk, New Delhi. A major barometer of the economy, industrial production is still in the negative zone. It declined 8 percent in August. The main reason for this is the lower output in the manufacturing, mining and power generation sectors. IIP saw a 1.4 percent contraction in August 2019, while industrial production declined by 10.4 percent in July.
On a year-on-year basis, manufacturing sector production declined by -8.6% as against -1.7% in August 2020, -9.8% against -9.8 in Mining and -1.8% against -0.9 in Power. Primary goods fell from 1.0 per cent to -11.1 per cent. Capital Goods increased from -20.9 to -15.4. Intermediate Goods decreased from 7.3% to -6.8%. Consumer durables fell from -9.7% to -10.3%. Whereas non-consumer durables fell from 3.1% to -3.3%.
The Ministry of Statistics and Program Implementation said in a statement that it would not be appropriate to compare the IIP in the later months with the IIP of the months before the COVID 19 pandemic. Gradual relaxation of restrictions has improved economic activity.