Anand Rathi: India’s IIP On The Slow Path To Recovery Post May
Employees work inside an Ishwar Engineering Co. factory in Mumbai. (Photographer Dhiraj Singh/Bloomberg)

Anand Rathi: India’s IIP On The Slow Path To Recovery Post May

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Anand Rathi Report

In May, the industrial sector witnessed the second successive sharp plunge. Despite some relaxations, the lockdown and restrictions were severe in May and reflected in industrial growth figures. Pharma and staples slightly bucked the trend. In all major economies except China, industrial growth remains deep in the red.

Anand Rathi expects continued sequential improvements in industrial growth in India in coming months. The brokerage said monetary policy is likely to remain extra easy to compensate for lack of fiscal support. More measures to accelerate bank credit are likely, it said.

With further easing of the lockdown, Anand Rathi expects the June IIP figure to be around 15%. While the contractions in activities so far has been due to supply disruption caused by the lockdown, the impact of demand contractions would be visible in H2 FY21.

Click on the attachment to read the full report:

Anand Rathi IIP_EU.pdf

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