We lower FY20 CPI forecast to 3.7 percent from 4.1 percent previously. Another 25 bps repo rate cut in August is our baseline forecast,” said the note.India’s industrial output grew 3.4 percent year on year (YoY) in April to a 6 month high, according to the Index of Industrial Production (IIP) data released by the government on June 12.The Industrial output, or factory output, is the closest approximation for measuring the economic activity in the country’s business landscape.Deutsche Bank in a note said that even though the April IIP data is encouraging, the overall growth momentum remains weak. It expects one more 25 bps rate cut in August/October policy meeting.The Indices of Industrial Production for the mining, manufacturing and electricity sectors for April 2019 grew 5.1 percent, 2.8 percent and 6.0 percent, respectively, compared to April 2018.Primary goods production for April stood at 5.2 percent and that of capital goods was at 2.5 percent.
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