Industrial Production Contracts By 0.8% In August

The Index of Industrial Production (IIP) data fell marginally by 0.8% according to data by the Ministry of Statistics & Programme Implementation (MoSPI), published today, on October 12. Industrial production measures the output of businesses integrated into the industrial sector of the economy. The Index of Industrial Production (IIP) is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period concerning a chosen base period.

In the last month, industrial production or the IIP growth stood below 4.4% in September. In October, the IIP data was expected to remain sluggish on a marginally high base and muted core sectors.

Manufacturing is the most important sector for industrial production, and it accounts for 78% of total production. The biggest segments within Manufacturing are: basic metals (13% of total production); coke and refined petroleum products (12%); chemicals and chemical products (8%); food products (5%); pharmaceuticals, medicinal chemical and botanical products (5%); motor vehicles, trailers and semi-trailers (5%); machinery and equipment n.e.c. (5%); other non-metallic mineral products (4%); and textiles, electrical equipment and fabricated metal products (3% each). Mining accounts for 14% of total output; and electricity accounts for 8%.