Manufacturing Pains
The manufacturing sector, the major holder of IIP, is dragging the index numbers down due to weak output.
The manufacturing sector, the major holder of IIP, is dragging the index numbers down due to weak output. The sector remains sluggish in expanding capacities, too. New investment projects are getting announced, but only a few are seeing work start. Also, a big chunk of projects that were already underway are in trouble. Low capacity utilisation and low ROCE are the main deterrents.
