According to data from the Ministry of Statistics and Programme Implementation on Tuesday said that India’s industrial production activity in November 2020 had shrunk 1.9% on a year-on-year basis. Whereas the data showed growth in the factory output at 3.6 percent in October. From the previous year, the analysts polled had forecast industrial output to fall 0.4%.
The data showed that the overall deterioration in industrial output came on the back of a shrink in manufacturing and mining activity. It was stated that regarding sector-wise, electricity output grew by 3.5 percent in November 202o while mining and manufacturing output witnessed de-growth of 7.3 percent and 1.7 percent.
The Chief Economist and National Director, Research at Knight Frank India, Rajani Sinha, stated that the shrink in the industrial sector in November is not surprising at all. She said that owing to the situation the other high-frequency indicator of the economy showed a moderation in growth.
She highlighted that in the previous few months a lot of economic revivals were seen which had been possible due to pent-up demand and festive demand, and added that due to all these reasons the growth momentum was expected to moderate. She also added that with all the things coming to normalcy post the pandemic, the critical aspect will be at what level the growth momentum stabilizes.