India’s industrial production growth moderated to 5.0% YoY in Apr-24 from 5.4% in Mar-24.
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India’s industrial production growth moderated to 5.0% YoY in Apr-24 from 5.4% in Mar-24. Industrial activity continues to post reasonably strong growth. However, the underlying momentum continues to remain uneven, with investment-oriented production doing the heavy lifting, while consumption-oriented production barely eking out a marginal recovery vis-à-vis its pre COVID levels. Expectation of surplus rainfall, steady global growth conditions, and likelihood of renewed budgetary focus on rural economy, could support industrial activity in FY25. Meanwhile, headwinds from monetary policy and regulatory tightening coupled with geopolitical uncertainty would offset some of the gains. Keep an eye on the swing factor – input price inflation is expected to turn positive in FY25 after being negative in FY24.