December IIP to grow at 1.3%: ET Now Poll

NEW DELHI: After contracting to (-) 0.1% in November, the Index of Industrial Production ( IIP) is expected to have expanded at a modest 1.3% in December, says an ET Now poll. The consensus range of the poll varied from a contraction of (-) 3.6% to an expansion of 3.4%.

The poll predicts that the IIP will be impacted by a high base effect. While the mining sector output is expected to contract (-) 4.6% versus (-) 5.5%, the manufacturing sector output may exhibit a growth of 1.9% versus 0.3%.

The poll predicts that the electric sector output will show a robust growth of 4.4% versus 2.4% in November. The manufacturing sector output growth will also be impacted by a high base effect, says the poll. The capital goods sector output is likely to contract and the consumer goods sector would also have witnessed a slowdown.

The poll participants believe that the IIP will improve very gradually in the year ahead and that both government reforms and soft interest rates will help perk up the Gross Domestic Product ( GDP) gradually.