India December IIP data which has been announced just recently is not a Good news for the investing Community and the policy maker .The Index t has grown just 1.8% as against last year. One Month back (Nov 2011) the growth rate was 5.9%. The present status of poor performance may be partially due to the tight monetary policy being followed by RBI since last one year to combat higher Inflation. As Inflation has shown some down turn RBI may ease the monetary policy and announce reduction in the Repo rate in the next Quarter Monetary policy review next Month. Industry has been lobbying with the Government and central Bank for reducing the interest rate since last few Months. After December data the YTD FY 12 IIP growth rate stands at 3.6% YOY. Mining Sector continued to perform very badly due to lack of clarity in Government policy and scam in the sector. This sector is not performing well since January 2011. Mining is degrowing at 2.7% YTD this year. Electricity sector has shown some good performance and is growing at 9.4% YTD this year. In the Manufacturing sector the average growth till now in this fiscal year is 4. In the Manufacturing sector the average growth till now in this fiscal year is 4% as against 9% seen last year. Consumer Non Durable segment is doing exceedingly good and continued to register double digit growth since last two Months . Consumer durable has grown just 5.3% in December (the average till now in FY 12 is also 5.3%)
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