Industrial output surged 29.3 per cent in May, backed by a low-base effect and good performance by manufacturing, mining and power, but remained below the pre-pandemic level.
The manufacturing sector — which constitutes 77.63 per cent of the index of industrial production (IIP) — grew 34.5 per cent in May, according to the data released by the National Statistical Office (NSO). Mining sector output rose 23.3 per cent in May, while power generation increased 7.5 per cent.
In May 2021, IIP stood at 116.6 points compared with 90.2 point in the same month last year. The index was at 135.4 points in May 2019. The data showed that industrial production has recovered but was still below the pre-pandemic level in May 2019. The IIP had contracted 33.4 per cent in May 2020.
Madan Sabhavis, chief economist of Care Ratings, said: “The IIP growth at 29.3 per cent is lower than our forecast of 47.8 per cent. It has been driven by base effects and this will get diluted over a few months, especially in July. Within manufacturing only pharma has shown negative growth because of the high base effect. PMI-manufacturing does not bode well for IIP growth in June as it was below 50.”