India’s factory output (IIP) shot up 22.4% in March while retail inflation eased to a three month low of 4.29% in April, As favourable base effects kicked in giving a false sense of normalcy even as the rampaging second wave of coronavirus pandemic and Slow vaccine rollout are widely expected to delay any meaningful economic revival in Asia’s third largest economy.
A spurt in coronavirus cases forced the government to impose a nationwide lockdown in March last year. This led to economic growth collapsing to a 23.9% in June quarter with core sector contracting for six consecutive months from March to August of 2020, Indian economy plunged into its deepest recession in FY21 in more than 40 years contraction 8% as the first wave of the pandemic took a heavy toll on both services and manufacturing activity with massive job losses.
What is the Index of core industries?
This is an index of the eight most fundamental industrial sectors of the Indian economy and it maps the volume of production in these industries. Since these eight industries are the essential “basic” and/or “intermediate” ingredient in the functioning of the broader economy, mapping their health provides a fundamental understanding of the state of economy.