April IIP growth at 8-month high but worries linger

The country’s industrial output growth rose to an eight-month high in April, helped by a low base, pointing to a gradual and continuing recovery but the data still showed some areas of weakness in the sector, which is crucial for faster economic expansion.

The index of industrial production rose an annual 7.1% in April, compared with an upwardly revised 2.2% in March. The sector grew by 133.5% in April 2021 on the back of a very low base of 2020 when the Covid-19 induced lockdown had smothered economic activity and growth.

Several indicators had pointed to the recovery gathering momentum, including PMI manufacturing surveys and GST receipts. 

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