India IIP - Base Normalisation Leads To Single-Digit Industrial Production Growth In September: CARE Ratings
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CARE Ratings Research Report
India's Industrial production growth fell to 3.1% YoY in September 2021, significantly lower than the double-digit growth of 12% observed in the previous month.
It is also lower than our forecast for IIP growth at 5.6% for September 2021. The decline in growth of industrial output is due to a combination of unfavorable base and slowdown in industrial activities during September.
The lower growth is on expected lines and is also reflective of disappointing core sector growth which eased to 4.4% YoY in September 2021 from 11.5% in August 2021.
It should be noted that the eight core industries account for nearly 40% of India’s industrial production.
Sequentially, IIP growth receded for second consecutive month by 2.6% in September 2021 reflecting supply side issues.
Heavy rains during September impacted mining activities and led to lower power production.
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