India’s industrial production revertes to expansionary territory to 3.1% YoY in Sep-22 vs. -0.7% in Aug-22, surprising the markets positively.
Download ReportSep-22 IIP - Muted festive cheer
India’s industrial production not just reverted to expansionary territory (3.1% YoY vs. -0.7% in Aug-22), but the data also posted a positive surprise compared to market expectations. This was accompanied by improvement in breadth of industrial activity along with outperformance of seasonal benchmark at headline level. Even though growth enablers in the form of unwavering focus on public capex, headline comfort on monsoon, and festive demand continue to be supportive, downside risks to India’s economic growth have escalated in recent months amidst weakening of global growth impulses. We maintain our expectation of moderation in FY23 GDP growth to 6.8% from 8.7% in FY22.