Industrial production and retail inflation data are accompanied by some signs for the economy. One indicates a positive trend, while the other has negative implications. Basically, they reflect the uneven recovery in the economy.
Collapse of mining and manufacturing leads to contraction of PII:
India’s industrial production index (IIP) contracted 1.9% in November from 4.2% in October. The crisis is the first after a gap of two months. This confirms that India’s economic recovery remains uneven.
On a sectoral basis, mining and manufacturing productions fell by 7.3% and 1.7% respectively. Electricity production recorded strong growth of 3.5%.
The production of durable consumer goods edged down 0.7%. And the production of non-durable consumer goods and capital goods fell by 0.7% and 7.1%, respectively. Production of infrastructure / construction edged up 0.7%