Indian industrial production grew just 0.1 per cent year-over-year (YoY) in April, and manufacturing which accounts for 75 per cent of the industrial output index also grew just 0.1 per cent.
The poor IP number was led by a 16.3 per cent YoY decline in capital goods, but on the positive side consumer sector growth rebounded 5.2 per cent YoY.
HDFC Securities’ analysts Sameer Narang and Vishal Modi write, “with poor external and domestic demand and high interest rates, we believe manufacturing growth is likely to remain soft. However, 25% YoY currency depreciation will help in growing exports and import substitution.”
Now here’s a chart that shows the sharp decline in industrial production:
Photo: HDFC Securities
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