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Macroscope – Indian Industrial Production (IIP) Reading Of IIP Index For The Month September 2020

Written by - Tejesh Kumar

November 13, 2020 2 minutes

What is index of industrial production data (IIP)?

IIP measures the industrial production for period under review, usually a month against the reference period. It is a key indicator of the manufacturing sector of the economy.

Its Economy based are as follows:


Its Use based are as follows:


What does IIP Index data mean for Financial Markets?

It serves as an indicator of corporate earnings, influencing equity & debt investors alike.
It is also a good parameter to understand the industrial activity in the country.

IIP Reading – September 2020

What is the latest reading?

IIP grew by 0.2% in Sept’20 vs -7.4% in Aug’20 and -4.6% in Sep’19 .


Investor Takeaway
IIP turned positive for 1st time since pandemic hit the country, even though inflation continued an upward trajectory in October.

Rising marginally by 0.2%, IIP entered positive territory after a 6-month contraction.

IIP during April -September 2020 recorded contraction of -21.1% from year ago period.

IIP had grown 1.3% during same period last year.

Element Trajectory


The unlocking of economies, and festive season drove manufacturing and demand for primary goods upwards, thus boosting production numbers.
Revival of demand and consumption can be hinted by growth seen in consumer durables, non-durables and electricity elements.

GDP revival on the cards (reflected by RBI and Moody’s revised estimates), reducing Covid count, and Amanirbhar package, can expedite recovery process and provide much needed boost to manufacturing.

Combined with today’s announcement, total stimulus adds up to ~15% of GDP, making it one of the highest in the world.

India is gearing to become the manufacturer of the world, starting with being primary vaccine provider across border and its PLI scheme.

Click here If you want to read the complete IIP Index press release

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