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Below are Perspective on IIP & CPI numbers by Ms. Rajani Sinha, Chief Economist & National Director - Research, Knight Frank India

IIP

“IIP contracted further in Feb 2021 in line with the weakening of some other leading indicators in the last few months. The economic indicators of the last few months are being watched very carefully to see  at what level India’s growth momentum is sustained, after the pent up demand is taken care of. The second wave of COVID 19 could jeopardize India’s economic revival and the overall impact will have to be ascertained. While Indian economy is expected to record a bounce back in FY22, the spiking of COVID cases could delay the expected demand revival. A lot will depend on how much time the government takes to control the spread of COVID, which in turn will have a strong bearing on consumer and business sentiments”.

CPI

“CPI inflation has inched up in March, with further rise in food and fuel inflation. Severe supply-side bottlenecks unlikely in the second wave of COVID 19, as there is likely to be less restrictions on goods movement this time around even with some regional lockdowns. However, we need to be cautious on the impact of rising global commodity prices on inflation in India”.

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