Tuesday, June 12, 2012

Latest IIP date ( April ) - Poor show once again

The April IIP data is out and once again it is very dissapointing . The Industrial growth rate is 0.1% in April . What will happen to India at this growth rate ??  It is expected that such low growth will continue till the end of 2012 . Consumer goods Industry has performed better in April as compaired previous Months . Looking into poor GDP and IIP data now it is expected that RBI will have little option not to reduce the Repo rate . RBI is expected to reduce the rate by atleast 25bps on 18th June . All key area like Mining , Manufacturing & Electricity continue to show poor growth . It is now 1 year Mining industry is showing dismal growth rate due to number of scam in the Industry and no new announcement by Government .

So unless Government take some big step to boost the Economy by reviving the feel good factor we will see some more such surprising data in the coming Months

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