Industrial production index (IIP)



  • The industrial production is expected to remain in contraction mode with a -8.5% growth for the entire financial year despite marginal improvements in H2.
  • Industrial production had recorded mild growth in FY20 on account of de-growth in automobile, machinery equipment and electronic goods.
  • In FY21, a marginal improvement in these sectors was expected. However, the Covid situation adversely impacted fresh capex plans along with new launches in critical sectors such as automobiles.
  • Oil price, a major driving factor for automobile industry is expected to remain favourable for the industry.
  • Stimulus packages from central and state governments, which were expected to aid in the revival of the consumer sentiment - are successful to an extent.