A report by State Bank of India has claimed that the country’s economy is in “a gradual recovery mode”.

The Ecowrap report by the SBI, India’s largest public sector bank, said that the 8.4 per cent IIP (Index of Industrial Production) growth in November “is possibly

no flash in the pan and a 6 per cent plus growth in December as per SBI Index may not be ruled out”.

“In January 2018, the IIP may continue to grow in excess of 4 per cent, indicating a marginal moderation in month-o-month growth,” the report said.

“Improved credit ratio (upgrades to downgrades) during the 9-month period ending December 2017 favoured NBFCs specially Housing Finance Companies…

This indicates that household consumption growth remains robust and will only improve in the coming days,” it added.

Further, the report pointed out that “Infra, Power producer and Electric” utility companies have also shown improved credit ratios during the period under review.

“In consumption space chemicals, auto components, container and packaging etc. have shown credit ratios of above one during April 2017 to December

2017…,” the report said.