InvestorQ : What explains the sharp increase in the IIP numbers this month? Is growth back in the midst of the lockdown?
Deepa Salunkhe made post

What explains the sharp increase in the IIP numbers this month? Is growth back in the midst of the lockdown?

Answer
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Juvina Maggie answered.
5 months ago


The IIP is normally announced with a lag of 1 month. The IIP announced on April 09 pertains to the month of Feb-20. During the month of February, India’s factory output grew 4.5% up from a revised 2.1% in Jan-20. This refers to the period before the government imposed a nationwide lockdown. There is also the base effect because the IIP growth in Feb-19 was just at 0.2%. However, the cumulative growth for the period April-February 2019-20 is still fairly disappointing at 0.9%. The big growth in Feb-20 came from mining at 10% followed by electricity at 8.1% and manufacturing at 3.2%. The core sector data for Feb announced on the first day of April had also come in at a healthy 5.5%. We will have to wait for the March data to get a clearer picture.