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

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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