Industrial output shrinks 0.6%, dashes economy recovery hopes
- Gandhi vs Gandhi: Priyanka slams Varun, says LS poll not a family tea party
- Supreme Court grants recognition to transgenders as third category of sex
- SC rejects Kejriwal's plea to stay trial in defamation case filed by Kapil Sibal's son
- Unethical, betrayal: Prime Minister Manmohan Singhâs daughter voices family anger
- Modi equates Rahul with kids, says âtoffeeâ has caught his fancy after âballoonâ
Power generation grew by 5.2 per cent in December last year, as against 9.1 per cent in same month of 2011. The electricity generation in the April-December period this
fiscal stood at 4.6 per cent, as against 9.4 per cent in a year-ago period.
In terms of industries, 12 out of 22 groups in the manufacturing sector have shown negative growth in December, 2012 as compared to the same month in 2011.
India economy recovery hopes dashed as output unexpectedly shrinks
(Reuters): India's industrial production unexpectedly shrank for a second straight month in December, weighed down by weak investment and consumer demand, casting doubt on Finance Minister P. Chidambaram's view that Asia's-third largest economy is showing signs of recovery.
The index of industrial production (IIP) fell 0.6 percent annually in December, data released by the Central Statistics Office showed on Tuesday.
A Reuters poll of 24 economists had expected growth of 1.1 percent, after output shrank 0.8 percent in November.
Manufacturing output, which accounts for the bulk of industrial production and contributes about 15 percent to overall gross domestic product (GDP), fell 0.7 percent in December from a year earlier.
"What is clear is that any meaningful industrial recovery is eluding us. Demand destruction is far more well entrenched than we thought," said Sujan Hajra, chief economist at brokerage firm Anand Rathi in Mumbai, who said he now sees GDP growth next year of 5-6 percent.
Preliminary data from India's statistics office last week predicted growth of 5 percent for the fiscal year ending in March 2013.
That was worse than anticipated and triggered an angry response from Chidambaram.
Chidambaram said the Central Statistical Organisation had used "dated data" and argued that GDP growth was following an upward trend in a sign of revival. He reiterated his view that 5.5 percent growth was possible.
- Modi wave is a myth, says Siddaramaiah
- In Mandya, discordant notes in show of Cong unity
- ‘Fakir’ Jankar takes on Pawar might in battle against ‘dynasty’
- Ballot paper in Braille to help blind persons cast their vote
- AAP volunteer attacked
- 64-year-old fights for Punjabi language, gets little support from political parties