See Nov IIP at 2%; FY16 GDP growth likely to be 7.3-7.4%: IDFC

The festive season and unseasonal rains could have affected core sector growth in November, Indranil Pan of IDFC tells CNBC-TV18. He expects November index of industrial production at 2 percent, down sharply from the 9.8 percent logged in October.He estimates GDP growth for this fiscal at close to 7.3-7.4 percent and says the growth momentum for FY17 could face challenges unless corporate balance sheets imporve and global growth picks up. Below is the verbatim transcript of Indranil Pan's interview with Ekta Batra & Anuj Singhal.

Ekta: Your view on the core sector data. It was a decline, this month of November but that was mainly because of festive season impact. In your sense what would it mean for the Index of Industrial Production (IIP)?

A: Yes, it was a decline of 1.3 percent. It was expected to a large extent because as you rightly pointed out, it was mostly the festive season effect plus there were certain days in November, more towards the fag end of November which were spoiled due to rains in certain parts of the country, so that would also have a bit of an impact on the lower side for the core as well as for the IIP. So IIP reading should be closer to 2-2.5 percentage, if I am not mistaken because the core sector electricity data is also zero percentage growth for this month. 

Ekta: So a decline or a growth of 2-2.5 percent?

A: We are right now looking at around 2 percent increase in the IIP, which is a significant downward momentum from the IIP of the last month.For entire interview, watch accompanying video.