InvestorQ : What were the highlights of the IIP announcement on Friday 10th June?
Anjana Aiyar made post

What were the highlights of the IIP announcement on Friday 10th June?

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Khushi Patel answered.
4 weeks ago
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Here are some of the key highlights of the IIP announcement by the DIPP on Friday.

· The index of industrial production (IIP) jumped 7.1% year on year for the month of April 2022. IIP is announced with a 1 month lag.

· However, this was largely on a low base compared to on a yoy basis, which magnified the growth in the IIP and hence needs to be taken with a pinch of salt.

· In terms of specific sectors, the mining sector recorded growth of 7.8% in April 2022, manufacturing at 6.3% and the power sector at an impressive 11.8% on yoy basis.

· Capital goods output, which his normally a measure of a possible revival in the capital investment cycle, showed growth of 11% in April 2022.

· After a gap of almost six months, the consumer goods showed a strong positive growth and could be hinting at a pick-up in consumer activity

· With IIP showing positive traction and inflation still out of control, the RBI is likely to continue its entire attention on controlling inflation going ahead.

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