India: Industrial production decelerates in January
Latest reading: Industrial production rose 4.8% on a year-on-year basis in January, following a 7.8% rise in the previous month.
Relative to the prior month’s data, readings in January softened for manufacturing (+4.8% on a year-on-year basis vs +8.1% in December), mining (+4.3% vs +6.8% in December) and electricity (+5.1% vs +6.3% in December).
Outlook: Growth of industrial production is set to rise even further above the 10-year FY 2015–2024 trend of 3.4% in the fiscal year ending March 2027. Tailwinds include divestment away from China by Western multinationals, plus government subsidies to boost the production of advanced industrial goods like semiconductors and pharmaceuticals.