India’s IIP could grow, wholesale price inflation could come down: Report

MUMBAI: Industrial production for October could rise 5.8% while consumer inflation could touch 5.2% and wholesale price inflation could dip by (-) 2.5% in November, India Ratings and Research (Ind-Ra) said in a report on Wednesday.

The rise in IIP is attributed to the strong performance by the electricity sector, consumer durables and a robust showing by the capital goods sector, the report stated.

IIP logged its best growth rate since the past 17 quarters in 2QFY16 (July-September), and it will expand further in October 2015.

“November is likely to be the 13th consecutive month when Wholesale Price Index (WPI) inflation remains negative. The lower WPI deflation in November could be due to the continued decline in fuel group deflation. Ind-Ra expects WPI deflation to turn into inflation by early 2016, but will remain benign in the near term,” the report added.

It is expected that India’s economy could kick start in the coming couple of months. Many industry trackers have said that the country could maintain a growth rate of anywhere around 7.5% in the long run. The biggest worry, however, would be inflation, especially food inflation, said industry trackers.