Growth in India's Industrial production slipped into a contraction of 1.9%YoY in Nov-20 (vs. Bloomberg consensus and QuantEco estimate of -1.0% and 1.3% respectively) from an 8-month high of +4.2% in Oct-20 (revised upwards from 3.6%).
Download ReportNov 20 IIP - Growth Pangs
India’s IIP yet again slipped into a contraction in Nov-20, owing to a combination of loss of working days in a festivity heavy month along with a negative base. In addition, withering of the initial pent up demand post lockdown along with festive seasonality support, IIP is likely to have taken a breather in November. At the granular level, an uneven recovery is taking shape i.e., a K-shaped recovery within the overall V-shaped recovery. Basis the pace of recovery, we classify manufacturing sub-sectors into 3 categories – 1) Positive outliers 2) Fast improvers 3) Herd of laggards.