Smart recovery in construction & infra component of IIP
New Delhi: The construction and infrastructure component of the IIP staged a magnificent recovery immediately after the lockdown was eased in the country and the weight of this component clocked 11.37 points in October 2020 after touching ‘0’ level in two consecutive months of March and April 2020.
The weight started to get better from May 2020 when it touched 0.40 points and peaked in October 2020, representing a V-Shaped recovery due to the sustained efforts of the government coupled with attempts of the private companies.
The construction and infrastructure component constitutes 12.3 percent of the IIP. The number of items that recorded growth within this important component reached 22 in October as compared to ‘zero’ in March and April mere 3 in May, according to the Economic Survey 2021 presented by the Finance Minister Nirmala Sitharaman.
The steel, cement and some of the other important sectors represent about 40 percent of the IIP which staged smart recovery towards the end of 2020.
The overall IIP touched the levels of -2.6 percent (minus 2.6) growth in November 2020 as compared to the lows of -37.9 (minus 37.9) in April 2020.