India’s industrial activity strengthened in Jan-23 with IIP registering a growth of 5.2% YoY, up from 4.7% in Dec-22

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Mar 10, 2023

QuantEco Research || Jan-23 IIP - Headline improves, skewness persists

India’s industrial activity strengthened in Jan-23 with IIP registering a growth of 5.2% YoY, up from 4.7% in Dec-22. Although headline growth was supported by a favorable base on account of Omicron related disruption in Jan-22, sequential momentum in Jan-23 suggests a moderately strong pickup after adjusting for seasonality effects. Having said so, unevenness of recovery continues to persist. Continued emphasis on public capex since the beginning of the pandemic has been buoying production of investment goods. In contrast, production of consumption-oriented goods continues to struggle with respect to its pre pandemic levels. Overall, we continue to maintain our FY23 GDP growth forecast at 6.8% but anticipate a moderation towards 6.0% in FY24 on account of global and domestic factors.