March IIP seen at 3.61%; economists say 4% possible: Poll

A CNBC-TV18 poll of 9 economists reveals that industrial output for the March quarter will be a bare improvement over the previous. The Index of Industrial Production is likely to come in 3.61% this time against the 3.6% recorded in the previous quarter. CNBC-TV18's Avni Raja reports.

Majority of the participants of the poll, however, expected the figure to be about 4%. If that does happen, it could be a huge positive for the markets, reports the channel. IIP figures reflect the performance of 3 core industries- manufacturing, mining and electricity. Also see what the Planning Commission chief had to say about the India growth story earlier in April. The capital goods sector which has seen tremendous volatility over the past few months is a major trigger to watch out for. February saw the sector expanding 47% due to high base effect. Going forward, economists expect this negative cue to flatten out. Exports, which have been good, are likely to lend further support to the IIP figures. Manufacturing, which accounts for almost 80% of the IIP product-mix, and power, are expected to come in strongly this time. High interest rates could play a spoilsport with the consumer durables sector. The increase in consumer durables we have seen over the past quarter could wane over time, the report says. However, some economists think that there is time and the slide down of the sector due to interest rates is still a few months away. The auto sector follows suit, with a robust growth of 20% in March. Also watch the accompanying video.