India's April industrial output jumps to 134.4% due to low-base effect

The sharp recovery in industrial output is primarily due to the low base effect, which is a result of the nationwide lockdown that hit economic activity last year. It may be noted that the factory output, measured by the Index of Industrial Production (IIP), rose 22.4 per cent in March 2020.

India’s industrial production in April jumped sharply to 134.4 per cent in comparison to the corresponding month a year ago, according to government data released Friday. The sharp recovery in industrial output is primarily due to the low base effect, which is a result of the nationwide lockdown that hit economic activity last year. It may be noted that the factory output, measured by the Index of Industrial Production (IIP), rose 22.4 per cent in March 2021. In the year-ago period, factory output contracted by a sharp 57.3 per cent due to the strict nationwide lockdown.