Hopes of economic revival takes a pause with a dip in industrial output in December 2019.

The index of industrial production (IIP) contracted by 0.3% year-on-year(YoY) in December 2019. The fall comes after registering a revival in growth in November 2019. The industrial production output has seen a series of ups and downs since December 2018, and the current contraction in December 2019 was on account of negative growth seen in manufacturing component (-1.2% YoY) which accounts for 77% of the IIP. The industrial production has to pick up in the coming months in order to sustain the green shoots that was visible till last month. If not, the momentum of economic recovery will take a longer time. (February 12, 2020)

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January 31, 2020

Non-Food Bank Credit

Sluggish pace of credit growth to industrial sector in December.

Non-food bank credit (NFBC) grew at a moderate pace of 7.2% year-on-year (YoY), compared to the 8.3%% YoY growth in November 2019. Personal loans and credit to industrial sector showed a slowdown in growth. Credit to service sector saw a steady expansion as it inched up to 6.2% YoY. 

The subdued growth of industrial credit (1.6% YoY) continued into the second consecu...

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