Feb factory output shrinks 3.6% in sharpest contraction in six months

The cumulative decline during April-February (2020-21) was 11.3%, compared to a growth of 1% during the same period a year ago

Industrial production declined for the second month in a row in February at a faster rate of 3.6 per cent than 0.9 per cent in the previous month, which could have dampening impact on overall economic growth in the fourth quarter of 2020-21.

This is the sharpest contraction the factory output has seen in six months.

Factory output, as measured by the Index of Industrial Production (IIP),  had grown by a 16-month high of 5.2 per cent a year ago, which was the month before lockdown was imposed towards the last week of March, 2020. That way the high base