India’s industrial production growth decelerated to 3.7% YoY in Jun-23 from 5.3% in May-23

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Aug 11, 2023

QuantEco Research || Jun-23 IIP - Range-bound

India’s industrial production growth decelerated to 3.7% YoY in Jun-23 from 5.3% in May-23. Internals for Jun-23 indicate a modest uptick in seasonally adjusted momentum. On a quarterly basis, IIP clocked 4.5% YoY expansion in Q1 FY24, unchanged from Q4 FY23 levels. While this reflects resilience of domestic economy, unevenness in recovery continues to persist, with increasing divide between investment and consumption oriented industrial production. Looking ahead, we expect growth in volume of industrial production in FY24 to moderate from its FY23 level of 5.2% (in line with our FY24 GDP growth forecast of 6.0% vis-à-vis 7.2% in FY23). However, this might not entirely be reflected in Industry GVA on account of sharply lower input price inflation for most industries.