InvestorQ : How was the IIP announced on Monday? Does it show signs of growth?
Niti Shenoi made post

How was the IIP announced on Monday? Does it show signs of growth?

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ishika Banerjee answered.
3 weeks ago
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The index of industrial production or the IIP is normally announced with a lag of one month. The IIP for Feb-21 dipped further into negative zone to -3.58% largely due to the pressure on the manufacturing sector. That is because manufacturing has a 77.6% weightage in the IIP basket and the overall IIP normally tends to converge towards the manufacturing IIP.

There was good news in that preliminary estimates of IIP for Jan-21 and Nov-20 were upgraded slightly. This gives hopes of an upgrade for Feb-21 too. Cumulative IIP for first 11 months of FY21 was -11.5%. If that remains the case, then the push for restricting GDP contraction for FY21 at -8% might be tough. RBI may choose to hold rates for whole of 2021.

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