India's factory output contraction eases to 10.4% in July: IIP data

The Index of Industrial Production (IIP) contracted by 10.4% in July as compared to a contraction of 16.6% in June as the GDP witnessed a historic contraction of nearly 24 per cent in Q1FY21.  While the GDP witnessed a slowdown, the industrial activity is slowly picking up as the country enters Unlock 4.0 despite the surging coronavirus cases.

Rating agency ICRA had expected a single-digit contraction in the upcoming print for the Index of Industrial Production for July 2020. According to the rating agency, while the improvement in the industry had gathered speed in July 2020, the momentum of the