IIP: The country’s index of industrial production (IIP) surged 134.5% y-o-y to 126.6 in
the month of April 2021 primarily due to a low base in April 2020. However, the y-o-y
numbers are comparable in the strict sense as the numbers for April 2020 were not
computed by NSO due to the nation wide lockdown. However, on a m-o-m basis the
index recorded a fall of 13% as aptly reflected by a fall in GST by 28% collections for
the month.
CPI: CPI for the month rose sharply to 6.3% vs 4.23% in April. On a m-o-m basis, the
CPI went up by 1.6% owing to a 1.9% (5% y-o-y) increase in food prices led by oils
and fats, eggs, vegetables, pulses, spices and fruits. Fuel and light inflation went up by
11.6% and by 2.2% sequentially. Rural inflation came in higher than urban inflation on
the back of higher core inflation. Core inflation rose to 6.4% vs 5.1% in April. M-o-m,
the core inflation grew 1.5%, led by a 2.6% increase in personal care, 2.2% in health,
2.1% in household goods and services and 2% in clothing and footwear.
Trade Deficit: The trade deficit for the month aggregated to $9.4 Bn vs a trade surplus
of $0.7 Bn in June 2020 and a deficit of $16 Bn in June 2019 . The country’s exports
came in at $32.5 Bn vs 22 Bn in June 2020 and $25 Bn in June 2019. Imports for the
month increased by 96% over June 2020 to US$41.9 Bn due to lower base effect. Oil
imports for the month rose to $10.68 Bn, as compared to $4.97 Bn in June 2020.
Fiscal Deficit: The fiscal deficit stood at 8.2% of the Budget Estimates, as compared to
59% in the same period last year. The main contributors to the lower fiscal deficit were
higher tax revenues at 15.1% of BE vs 2.1% and net non tax revenues at 47.9% vs
2.8% in the same period last year. Similarly, even total expenditure 13.7% for the period
vs 16.8% in the past period.