Anindya writes
“The biggest contribution to the growth in IIP came from one particular segment – ‘Digestive Enzymes and Antacids’ – the industry patronised by yours truly and millions of other Bengalis.
This subsector of India’s pharmaceuticals industry accounts for just 0.22% of the country’s industrial output. But when it comes to contributing to output growth, it punches way above its weight. The government has published output data for the ‘Digestive Enzymes and antacids’ subsector for 15 out of the 18 months between April 2017 and September 2018. The IIP grew by an average of 4.4% over these five quarters and drugs to treat heartburn and indigestion contributed 23% to this additional output.
An industry group that has a weight of less than one-fourth of a percent in the IIP contributed nearly one-fourth to India’s industrial growth ”
India’s IIP data is simply not trustworthy. At best, it gives us a basic sense of the fortunes of our factories, but it’s probably no better than the sense you’ll get by simply observing what people around you are buying and what the shops in your neighborhood are selling. And every indicator there is pointing to a deep and steady slowdown.
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