March IIP continues to show tentative signs of recovery - ICICIBank Treasury

- IIP growth posted yet another positive growth in March at 2.5% YoY as against a revised previous print of 0.5% YoY

- Manufacturing and electricity contributed positively to the March print. Mining growth continues to languish in negative territory.

- Capital goods registered a second consecutive month of positive growth and consumer non durables exhibited strong performance

- A sustained pick up in consumer non durables would be indicative of a possible recovery in consumption demand

- Overall IIP growth for the year however was at a multiyear record low of 1% YoY and considerable policy push and structural reforms will be required to bring about an improvement in industrial performance and investment demand.

Source : Equity Bulls

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