In line with expectations of moderation, headline IIP growth decelerated to 13.6% YoY in Jun-21 from 28.6% in May-21, with ebbing of favorable statistical base effect

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Aug 12, 2021

Jun 21 IIP: Headline lower, momentum strong

In line with expectations of moderation, headline IIP growth decelerated to 13.6% YoY in Jun-21 from 28.6% in May-21, with ebbing of favorable statistical base effect. Nevertheless, sequential momentum turned out to be strong amidst gradual unlock by states, while other enablers like public capex, monsoon, vaccination, and policy support continue to remain in place. The government’s recent decision to roll back the contentious retrospective tax laws should boost India’s investment climate along with other structural steps like competitive corporate tax regime and the PLI Scheme led Atmanirbhar policy thrust.