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India’s industrial output snaps recovery, contracts 2.6% in November

In September, the Index of Industrial Production grew 0.2 per cent year-on-year compared with a revised contraction of 7.36% in August.

SNS | New Delhi |

After a slight improvement in the month of September, the production output of India’s major industries shrunk both sequential and on a year-on-year basis in November by (-) 2.6 per cent.

The Index of Eight Core Industries’ reading in November showed a contraction greater than that of (-) 0.9 per cent registered in October.

Though not comparable, on a YoY basis, the growth rate stood at 0.7 per cent in November 2019.

In September, the Index of Industrial Production grew 0.2 per cent year-on-year compared with a revised contraction of 7.36% in August.

Out of the total eight core industries, five of them witnessed negative growth in November 2020. These five industries include crude oil, natural gas, refinery products, steel, and cement. Coal, fertiliser and electricity were only three sectors to record growth.

While the production of crude oil industry slipped 4.9 per cent, the natural gas and refinery products dropped by 9.3 per cent and 4.8 per cent respectively.

Likewise, the steel and cement industries suffered as their production plunged 4.4 per cent and 7.1 per cent respectively.

On the other hand, production growth at coal, electricity sector and fertiliser stood at 2.9 per cent, 2.2 per cent and 1.6 per cent respectively in November.

ECI index comprises of 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).

Besides, the Ministry of Commerce & Industry in a statement revised the ECI index production rate in August to (-) 6.9 per cent.