India’s Industrial Output Contracts 16.6% in June

(15 August 2020) India’s industrial output, measured by index of industrial production (IIP), contracted by 16.6% yoy in June compared to the decline of 34% in May, the fourth successive month of contraction. However, the contraction was at slower pace on the back of modest recovery in manufacturing that contributes around 78% in the IIP.

  • Manufacturing sector contracted 17.1% in June, lower than the 38.4% in May.
  • Mining fell by 19.8% in June against drop of 20.5% in May.
  • Electricity generation declined 10% in June as compared to 14.9% (down) in May

Among the use-based categories, only consumer non-durables moved from negative territory to positive with sharp growth of 14% YoY in June as compared to decline of 11.1% in May. The sharp jump in the non-durables likely driven by restoring of inventories that were exhausted during the stringent lockdown months.

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