March factory output up 22.4% on low base effect
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Last Updated: May 13, 2021, 07:11 AM IST
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Synopsis
The index of industrial production (IIP) shrank 0.8% in FY20 compared with the contraction of 8.6% in FY21. India imposed a nationwide lockdown toward the end of March last year, which was lifted in phases. Closures have returned due to the second Covid wave.
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Industrial production had contracted 18.7% in March 2020. This base effect is likely to last until August this year because of negative growth last year.
India’s industrial production rose by a sharp 22.4% in March after two months of contraction, helped by the year-earlier low base due to the first Covid wave, data released on Wednesday showed. Economists have warned that the second wave will dent growth expectations. Separately released data showed retail inflation eased to a three-month low in April to 4.29% from 5.52% in March due to softening food prices.