Gap between India's underlying economic growth and IIP set to grow further

The last time a similar, wide gap between underlying economic growth and the pace of IIP was during the June 2015 quarter at 6.4 per cent

The link between India’s underlying economic growth and pace of industrial production continues to weaken. After the latest slump in the index of industrial production (IIP), the gap between underlying economic growth and IIP is set to rise in the January-March 2019 quarter. 

According to the data by the Central Statistics Office (CSO), industrial production was up just 0.8 per cent on average during the first two months of the current calendar year, against an expected 7.3 per cent year-on-year growth in gross value added (GVA) during the January-March 2019 period. 

Economic growth is based on Bloomberg consensus estimates. If