Graded pick-up: India's May industrial production gathers steam

As per the Quick Estimates of Index of Industrial Production (IIP), on one hand, industrial activity picked up pace in May from April but was far too slow when compared with the like period of last year.

On a sequential basis, the Quick Estimates of Index of Industrial Production (IIP) for the month of May 2020 stood at 88.4 (index reading) as compared t o 53.6 for April 2020, indicating a graded pickup in industrial activity.

However, on a year-on-year basis, the rate of factory output during the month under review was far lower than the level recorded during May 2019.

As per the data, the IIP had recorded an index reading of 135.4 in May, 2019 -20 (-34.71 per cent).

The estimates documents released by the Ministry of Statistics & Programme Implementation said that current indices should not be compared with that of months preceding the Covid-2019 pandemic.

"In view of the preventive measures and announcement of nationwide 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. This has had an impact on the items being produced by the  establishments during the period of lockdown and the subsequent periods of conditional relaxations in restrictions," the statement said.

"The number of units responding has improved in May 2020 as compared  to the earlier months of lockdown. The weighted response rate at time of QE of April 2020 was 87 per cent which is now revised upwards to 91 per cent at first revision."