Ms. Ritika Chhabra - Economist and Quant Analyst at Prabhudas Lilladher.
We expect IIP to post a healthy 17%-18% year on year growth for the month of May. The eight core industries, that represent around 40% of weight of items included in IIP recorded a y-o-y growth rate of 18.2% in May, signaling a robust expansion in IIP during the month. The electricity generation and coal production increased 26.3% & 25.1% respectively in May 2022 over the same period last year. The manufacturing output that constitutes 77.63% of the index is also expected to report double digit growth with significant contribution from basic metals, food products, other non-metallic mineral products, and machinery equipment. In addition, the low base due to second wave of Covid-19 will contribute to the higher growth.