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June 30, 2020

IIP Index of Industrial Production decline 23% in May and 37% April 2020

by facelesscompliance in Compliance Law, Corporate Law

IIP Index of Industrial Production decline 23% in May and 37% April 2020

The Office of Economic Adviser, Department for Promotion of Industry and Internal Trade is releasing Index of Eight Core Industries for the Month of May, 2020.

The growth rate of Index of Eight Core Industries for May 2020 declined by 23.4% (provisional) compared to decline of 37 percent (provisional) in previous month of April 2020.Its cumulative growth during April to May, 2020-21 was -30.0 per cent.

In view of nationwide lockdownduring April& May 2020 due to COVID-19 pandemic, various industries viz. Coal, Cement, Steel, Natural Gas, Refinery, Crude Oil etc.experienced substantial loss of production.

Final growth rate of Index of Eight Core Industries for February’2020 is revised at 6.4%.The Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).Details of yearly/monthly index and growth rate is provided at Annexure.

Monthly growth rates of Index of Eight Core Industries (Overall) are depicted in the graph: 

5. The summary of the Index of Eight Core Industries is given below:

Coal- Coal production (weight: 10.33per cent) declinedby 14.0 per cent in May, 2020 over May,2019. Its cumulative index declined by 14.7per cent during April toMay, 2020-21over corresponding period of the previous year.

Crude Oil-Crude Oil production (weight: 8.98per cent) declined by 7.1 per cent inMay, 2020 over May,2019. Its cumulative index declined by 6.7 per cent during April toMay, 2020-21over the corresponding period of previous year.

Natural Gas- The Natural Gas production (weight:6.88per cent) declinedby16.8 per cent in May, 2020 over May,2019. Its cumulative index declined by 18.3 per cent during April to May, 2020-21 over the corresponding period of previous year.

Refinery Products- Petroleum Refinery production (weight: 28.04per cent) declined by 21.3 per cent in May, 2020 over May,2019. Its cumulative index declinedby 22.7per cent during April to May, 2020-21over the corresponding period of previous year.

Fertilizers-Fertilizers production (weight: 2.63 per cent) increased by 7.5 per cent in May, 2020 overMay,2019. Its cumulative index increasedby 2.0 per cent during April toMay, 2020-21 over the corresponding period of previous year.

Steel-Steel production (weight: 17.92per cent)declinedby 48.4 per cent inMay, 2020 over May,2019. Its cumulative index declined by 63.3per centduring April to May, 2020-21 over the corresponding period of previous year.

Cement-Cement production (weight:5.37per cent) declinedby22.2per cent inMay, 2020overMay,2019. Its cumulative index declinedby54.1per centduring April to May, 2020-21over the corresponding period of previous year.

Electricity- Electricity generation (weight:19.85per cent) declinedby15.6per centin May, 2020over May,2019. Its cumulative indexdeclined by19.1per cent duringApril to May, 2020-21over the corresponding period of previous year.

Note 1: Data for March, 2020, April, 2020and May, 2020are provisional.

Note 2: Since April, 2014, Electricity generation data from Renewable sources are also included.

Note 3: The industry-wise weights indicated above are individual industry weight derived from IIP and blown up on pro rata basis to a combined weight of ICI equal to 100.

Note 4: Since March 2019, a new steel product called Hot Rolled Pickled and Oiled (HRPO) under the item ‘Cold Rolled (CR) coils’ within the production of finished steel has also been included.

Note5: Release of the index for June, 2020 will be on Friday,31stJuly, 2020.

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