India’s industrial production bounced back in Nov-22, to record an annualised growth of 7.1%YoY compared to a contraction of 4.2% in Oct-22
Download ReportNov-22 IIP - An organic bounce back
India’s industrial production bounced back in Nov-22, to record an annualised growth of 7.1%YoY compared to a contraction of 4.2% in Oct-22 (revised lower from -4.0% earlier). This surprised expectations strongly on the upside, with Reuters consensus and QuantEco estimate both pegged at a sombre 2.6% and 2.8% respectively. Nov-22 IIP performance reflects a solid payback from the loss of momentum seen in holiday heavy month of Oct-22, as also reinforced by broad-based uptrend recorded for most high frequency lead indicators such as PMI, core output, auto production, E-way bill generation among others. Taking on board the prospects of shrinking export growth, slowing urban consumption, and an uneven and a sluggish pace of private capex recovery, we peg our GDP growth outlook at 6.0% in FY24 compared to 6.8% in FY23.