India’s industrial production growth decelerated sharply to 5.8% YoY in Sep-23 from 10.3% in Aug-23.
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India’s industrial production growth decelerated sharply to 5.8% YoY in Sep-23 from 10.3% in Aug-23. Although the headline number still shows resilience, internals point towards subdued activity despite the beginning of festive season. We note the persistence of uneven recovery between investment and consumption-oriented industrial production, even as external demand continues to drag. Looking ahead, we expect growth in volume of industrial production in FY24 to moderate from its FY23 level of 5.2%. However, there is likely to be some support from decline in input price inflation along with relief spending from the government ahead of the general elections in early 2024.