India's IIP growth posted a moderate improvement to 1.3% YoY in Jan-22 from 0.7% in Dec-21.
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Mar 11, 2022
Jan-22 IIP: Recovery on uneasy path
India’s IIP growth posted a moderate improvement to 1.3% YoY in Jan-22 from 0.7% in Dec-21. The accompanying details were mixed. Absence of any sequential contraction in headline IIP despite the disruption from Omicron provided comfort. However, persistence of weakness in capital and consumer goods is concerning. While medium term prospects remain encouraging on account of progress on vaccination and continued monetary-fiscal policy support, the ongoing geopolitical conflict between Russia and Ukraine can potentially take the wind out of sails via disruption in supply/price of tradables and concomitant financial market volatility.