Industrial growth has sharply fallen for the month of June. The Index of Industrial Production (IIP) has come in at 5.6% as compared to 6.3% on a month-on-month (MoM), much below expectations of 8.6%, according to a CNBC-TV18 poll.
Dr Samiran Chakrabarty, Head of Research at Standard Chartered Bank was astonished at how low the numbers came in at. “The IIP series has been baffling us for a while with its volatility. “Particularly I want to bring to your notice to the intermediate goods growth which has come at 0.9% and this is now a trend emerging on intermediate goods growth of steady decline.”
With the RBI’s credit policy review fast approaching on July 26, Abheek Baruah, Chief Economist of HDFC Bank tells CNBC-TV18 that these numbers are unlikely to influence the apex bank’s action. “They have their eye on controlling inflation right now so I don’t think one set of IIP data will necessarily change their decision,” he says.
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