India's industrial output dips 0.1%


Published — Friday 11 January 2013

Last update 12 January 2013 2:29 pm

| نسخة PDF Print News | A A

MUMBAI: India's industrial output dipped marginally by 0.1 percent in November from a year ago, data showed yesterday, raising hopes that the central bank will soon cut interest rates to boost sluggish growth.
The figure matched market expectations but was well below the previous month's 8.3 percent growth figure and underlines the challenges the government faces as it seeks to kickstart the economy.
Manufacturing output, which accounts for three-quarters of the index of industrial production, rose just 0.3 percent, while capital goods — such as factory plant equipment — plunged by 7.7 percent, the data showed.
"The numbers were not a surprise," said Siddhartha Sanyal, chief India economist with Barclays Capital, who expects India's industrial output to grow in low single digits until March.
The once-booming South Asian economy has been hit by continuing high interest rates in the face of strong inflation, sluggish exports and slow investment.
India last month cut its growth forecast for the current fiscal year ending March to between 5.7 and 5.9 percent, putting it on track for its worst annual performance in a decade.
Prime Minister Manmohan Singh, who with general elections due in 2014 is keen to revive the economy, announced a string of reforms in September, opening up retail and other sectors to wider foreign investment.
The government has also vowed to clamp down on tax evasion to help to lower the country's wide fiscal deficit.
India's output dip comes as industrial output in fellow Asian giant China has been growing much faster, rising 10.1 percent in November from a year earlier.

What's happening around Saudi Arabia

JEDDAH: Jeddah police have closed all entry points into Makkah to prevent undocumented pilgrims from entering the holy city during this year’s Haj, in a bid to prevent overcrowding that could lead to health and safety problems.Officials have taken ac...
JEDDAH: The Bureau of Investigation and Public Prosecution recently charged three young men in the harassment case at the Jeddah corniche. A number of young men were arrested for harassing two Saudi girls at the corniche a day after Eid Al-Fitr.A vi...
JEDDAH: A total of 232 people injured in Sunday’s Aramco compound fire in Alkhobar have been discharged from hospitals here, the Eastern Province Health Department announced on Tuesday.Fifty-seven are still receiving treatment at four hospitals, with...
RIYADH: The Directorate of Education in Riyadh is keeping a close watch on schools, such as sanctioning health material and monitoring the health of staff and students, to prevent the spread of the MERS coronavirus among students. As a step in this...
RIYADH: The Ministry of Municipal and Rural Affairs has announced new legislation for the Dec. 12 elections, including fines and imprisonment for failure to disclose candidate financing, obstructing procedures or officials, and fraudulent activity.Vi...
JEDDAH: The low turnout of Saudis registering for the municipal elections is likely caused by the poor performance of previous councils, lack of a voting culture, inadequate understanding of the duties of councils, and the timing of the elections wit...

Stay Connected