BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
At 0.4%, industrial growth in December 2021 slipped below expectation. With the favorable base playing out by August 2021, industrial growth has since come off.
The withdrawal of lockdowns since September 2020 and pent-up demand created an unfavorable base for this year. Consequently, despite most major segments of industry registering a seasonal pick-up in Dec-21, overall industrial growth was close to zero and manufacturing contracted.
Apart from the unfavorable base, lack of traction in domestic demand is the main reason for the sharp slowdown in industrial production.
There are reasons to suggest that rural demand is particularly weak. The contraction in staples production seems to corroborate this.
While growth in primary and intermediate goods and infrastructure seems to suggest a modest revival in investment demand, capital goods continues to do poorly. Global supply-chain problems and high crude-oil prices are also unfavorable influences.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.