Sharpest contraction in industrial production recorded since 2011-12

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Sharpest contraction in industrial production recorded since 2011-12

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Amid the nationwide lockdown due to COVID-19 pandemic and the substantial production loss experienced by a number of industries, industrial production has contracted sharply by 55.5 per cent in April 2020. This is the sharpest contraction recorded since the inception of the 2011-12 IIP series.
Story: Shivani SharmaDesign: Pragati Srivastava

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Mining and quarrying has recorded a contraction of 27 per cent in April 2020 as the nation-wide lockdown led to shortage of labour and sub-par production activity.

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Electricity has recorded a contraction of 22.6 per cent during the month as lower demand from the industrial units impacted the overall production in electricity.

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Manufacturing output has recorded a sharp contraction of 64 per cent in April 2020 as most of the manufacturing units remained shut in April to contain the spread of coronavirus. Each of the 23 industries recorded a fall in industrial production during the month.

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Capital goods have recorded a notable and sharp contraction of more than 90 per cent in April 2020 which is reflective of subdued investment demand in the economy, amid the lockdown. Along with capital goods, consumer durables recorded a contraction of 95 per cent in April 2020, reflecting weakness in consumer demand during the lockdown.

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Infrastructure and construction goods also recorded negative growth of 83 per cent in April 2020 due to the nation-wide lockdown which prevented labourers from undertaking construction activities.

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At the same time, intermediate goods recorded negative growth of 66 per cent in April 2020.

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The contraction in primary goods and consumer non-durables has been less severe at 26.6 per cent and 36.1 per cent respectively in April 2020.