GDP and IIP gap may widen to over 900 bps in third quarter, says Moody's

The link between the country’s headline economic growth and pace of industrial production continues to weaken.
 
In fact, the gap between the two macro variables is likely to reach its highest level since the 2008 Lehman Brothers crisis if the gross domestic product (GDP) estimates for Q3FY20 and latest trend in the Index of Industrial Production (IIP) are any indicator.
 
India’s headline GDP is expected to grow by 5.5 per cent during the third quarter, according to estimates by rating agency Moody’s while IIP contracted by 3.8 per cent during October 2019, the first month of the third