One month of negative growth of the Index of Industrial Production (IIP) should not be interpreted as the end of industrial recovery, India Ratings and Research said today.
Industrial production, measured by the Index of Industrial Production (IIP), dropped 3.2 per cent in November 2015.
The rating agency said the negative growth in November 2015 is an outcome of a higher base, the slowdown is evident across all the broad-based sectors namely mining, manufacturing and electricity.
Ind-Ra said it expects industrial gross value added to grow at 7.3 per cent in 2015-16.
Manufacturing growth came in at negative 4.4 per cent in November 2015, the lowest since October 2014.
After a relatively robust performance till October this fiscal, a sudden dip in the manufacturing sector performance is indeed worrisome, particularly when the government is focussing on ‘Make in India’ and is trying to revive infrastructure sector growth, the rating agency said.