| A slight improvement in the manufacturing and power sectors helped industrial output to grow 2.4 per cent in January, indicating a fragile recovery. It had grown by 1 per cent in the same month last year. The factory output as measured by the Index of Industrial Production (IIP) had contracted by 0.6 per cent in December and by 0.8 per cent in November. The finance ministry and industry bodies pitched for a rate cut by the Reserve Bank of India next week, for providing the much-needed fillip to the industrial sector, which is reeling under high credit cost and a slowing economy. Arvind Mayaram, secretary, department of economic affairs, said that since the inflation numbers have come down "so there is certainly a case for (giving) further impulses for growth". He said that RBI, which is scheduled to review the monetary policy on March 19, would take all developments and macro-economic conditions into account in reviewing the policy. RBI has forecast the March-end WPI inflation to be 6.8 per cent. For January, it was 6.62 per cent. Last month, in the monetary policy, the RBI had reduced the key interest rates by 0.25 per cent and released Rs 18,000 crore additional liquidity into the system to prop up growth through reduced cost of borrowing. CII president Adi Godrej said that after factoring in the base effect, industry performance remains below potential and called for rate cuts. As per the data, of the 22 industry groups, 11 showed positive growth in January led by electrical machinery, which grew by 46.7 per cent. Manufacturing grew by 2.7 per cent as against 1.1 per cent in the year-ago period. ... contd. Reader's Comments | Post a comment via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNEpmY9HsP7NC7-HoAulGOgYw_pYsQ&url=http://www.indianexpress.com/news/manufacturing-power-prop-up-jan-iip-to-2.4-/1087172/ | |||
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Tuesday, 12 March 2013
Manufacturing, power prop up Jan IIP to 2.4% - Indian Express
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