For March 2015, the Index of Industrial Production (IIP) fell to 2.1% after an exciting 5% in February.
March is usually big, because companies like to step up production in the last month of the year.
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You find that manufacturing growth has fallen to 2.2%, and the other two components (Mining and Electricity) are subdued in terms of growth as well.
If you are looking for use-based indexes, click the image below. Everything looks like it’s falling back to the zero line, and consumer goods production numbers are abysmal.
Our view:
This is lousy; 2% real growth is not good enough. Perhaps we’ll do better in services. What the data says is:
Slowdown.
India is slowing down, as seen in the crappy results of the previous quarter. IIP data has been terrible for years. Perhaps services have been helping the lack of production in the industrials. Markets, though, don’t seem to care.
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