May IIP - Second Wave Flattened IIP Growth To 29.3%: ICRA

A worker handcrafts glass beads at a factory in the McLeod Ganj area in Dharamshala, Himachal Pradesh, India. (Photographer: Sumit Dayal/Bloomberg)

May IIP - Second Wave Flattened IIP Growth To 29.3%: ICRA


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ICRA Research Report

The second wave of Covid-19 in India, in conjunction with a less distorted base, flattened the year-on-year growth of the Index of Industrial Production to 29.3% in May 2021 (down 33.4% in May 2020) from the revised 134.6% in April 2021 (down 57.3% in April 2020).

However, the pace of growth exceeded our forecast of 23.2%.

With the widening state-wise restrictions, the IIP recorded a decline of 8.0% in month-on-month terms in May 2021.

The sequential dip in activity was broad-based across the use-based categories, as well as two of the three sectors, namely manufacturing (down 9.5%) and electricity (down 7.0%).

Only mining escaped the impact of the localised restrictions brought on by the second wave of Covid-19, with a mild month-on-month uptick of 0.6% in May 2021.

Click on the attachment to read the full report:

ICRA IIP May 2021.pdf


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