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India's industrial production contracts 1.9% in November
New Delhi, January 12, 2021
India's industrial production activity decelerated by 1.9 per cent in November 2020 on a year-on-year (YoY) basis, according to data from the Ministry of Statistics and Programme Implementation.
The factory output in the country had grown at 3.6 per cent in October.
The overall decline in industrial production came on the back of a shrink in mining and manufacturing activity. Sector-wise mining and manufacturing output witnessed de-growth of 7.3 per cent and 1.7 per cent, while electricity output grew by 3.5 per cent in November 2020.
Rajani Sinha, Chief Economist & National Director, Research at Knight Frank India said: "The contraction in IIP for November is not surprising as the other high frequency economic indicators were also showing a moderation in growth."
She noted that a lot of economic revival seen in the previous few months had been because of pent-up demand and festive demand, hence the growth momentum was expected to moderate.
"With daily Covid infection rate reducing, vaccine round the corner and the economy close to normalcy, the critical aspect will be at what level the growth momentum stabilises," Sinha added.