Factory output crashes record 55.4% in April, govt says inappropriate to compare with earlier data

India’s industrial production shrank a record 55.4% in April with manufacturing crashing a whopping 64.3% even as the government did not release the headline IIP growth number saying it is not appropriate to compare the IIP of April, 2020 with earlier months. Ministry of Statistics & Programme Implementation also withheld the headline retain inflation growth number for May but official day showed retail food inflation rose 9.28% on year last month.
“In view of the preventive measures and announcement of nation-wide lockdown by the Government to contain spread of COVID-19 pandemic, majority of the industrial sector establishments were not operating from the end of March, 2020 onwards,” the National Statistical Office (NSO) under the ministry said in a statement on Friday.

It said this has had an impact on the items being produced by the establishments in April, where a number of responding units have reported NIL production.

“Consequently, it is not appropriate to compare the IIP of April, 2020 with earlier months and users may like to observe the changes in IIP in the following months,” NSO said, adding that these Quick Estimates will undergo revision in subsequent releases as per the revision policy of IIP.

For retail inflation, the government said that due continued limited transactions of products in the market in May as well, it has released the Price Movement of Sub-groups/Groups of CPI based on the price of only those items were included which have been reported from at least 25% of markets, separately for Rural and Urban sector and constituted more than 70% weight of the respective Sub-groups/Groups.

“The all India indices have been compiled using Direct Approach by considering a common market at the national level in both Rural & Urban sectors separately,” it said.