V-shaped recovery in economic activity continues in October: CEA KV Subramanian

NEW DELHI : Chief Economic Advisor KV Subramanian said on Saturday that the V-shaped recovery in economic activity continued in October and that both manufacturing output and basic sector growth have risen to pre-COVID levels.

The Industrial Production Index (IIP) rose 3.6 percent in October, mainly due to the better performance of the manufacturing and electricity generation sectors. The manufacturing sector, which has a weight of 77.6 percent in the IIP, registered a growth of 3.5 percent in October. In the period last year, the sector contracted 5.7 percent, according to data released by the National Statistical Office (NSO) on Friday.

“The V-shaped recovery in economic activity continued in October … IIP and the eight-core index rose further to pre-COVID levels. The widespread recovery of IIP resulted in growth of 3.6% in October 2020 compared to a 6.6 percent contraction in October 19, “he said in a series of tweets.

The growth of the PII and top eight industries is based on broad-based growth across all sectors and consumer and investment goods were the main drivers of PII growth in October 2020, it said.

“Generalized recovery: 243 of 407 items in the PII basket grew in October 20. In contrast, 217 items grew on average in the pre-COVID period (April 12 to February 20). Similar figures for September 20 and 20 April were 196 and 28, respectively, “he added.

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