Here's how HSBC sees Indian economy growing ahead

Leif Eskesen, Chief Economist - India & ASEAN for HSBC spoke to CNBC-TV18's Udayan Mukherjee about his views on the IIP number.

Below is an excerpt from the interview. Q: We have got a good base effect today. Do you think we could have a good IIP number? A: We are looking at little bit of an uptick in April. 3.7 percent year-on-year growth so somewhat smartly from the previous months. Little bit of an uptick also on sequential terms. So I think that’s certainly is what we see in the cards. Some of that has to do with a base effect. If you look at it by component, what we see on that side is really that manufacturing will come back to some extent. There would also be somewhat less of a drag from mining. By use, primarily we see a rebound in capital goods production. Some of that has to do with the weakness that we have in the previous months sequentially, so an uptick sequentially from that point of view. Also in terms of the Y-o-Y base, there would also be some lift on that side. I think primarily it would be from capital goods segments swinging back up again, but again it’s a very volatile fellow as we know. So it does not necessarily indicate a strong trend.