In the series of negative news one more is added today when the September Month IIP was announced by the Indian Government authorities. It is disappointing and concerning news for all stake holders. The growth rate is 1.9%YoY in Sept vs. 3.6% growth last month. Mining & Capital Goods sector is showing disappointing growth. So the cumulative IIP growth this year till September (April~ Sept) is now 5% as against 8.2% during the same period last year. Due to the regularsatory hurdle and lack of clarity to the Government policy Mining sector has de grown by 5.6% (-5.6%). Continued weakness in industrial production data could add downside risks to FY12 industry growth estimate these may be offset partially by higher agri growth, thus supporting FY12 GDP forecast at 7.6% for now. . Recessionary global conditions coupled with domestic factors, including the lagged impact of tightening and sluggish reform progress, are likely to result in GDP slowdown
No comments:
Post a Comment