Quote on IIP by Mahendra Patil, Founder and Managing Partner, MP Financial Advisory Services LLP
Below the Quote on IIP by Mahendra Patil, Founder and Managing Partner, MP Financial Advisory Services LLP
“India's Index of Industrial Production (IIP) rose to 5% in January 2025 from 3.5% in December 2024, indicating strengthening industrial activity, particularly in manufacturing and mining. This growth, combined with easing retail inflation at 3.61% in February 2025, signals positive momentum for the overall economy.
The RBI has already reduced the repo rate by 25 basis points to 6.25% to stimulate growth, however, given the current trends, it appears that there is potential for additional rate cuts in upcoming policy reviews to encourage investment and consumption.
However, emerging risks from global trade tensions could challenge this positive outlook. Export sectors such as automobiles, agriculture, and steel may face headwinds due to aggressive trade policies from key economies like the US and EU. Additionally, currency volatility could increase import costs and affect trade competitiveness, exerting further pressure on economic growth. Policymakers must closely monitor these risks and adopt proactive measures to safeguard India's economic trajectory and ensure sustainable industrial growth”.
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