New Delhi, March 12: India's industrial production jumped 2.4 per cent in January as compared to a contraction of (-) 0.6 per cent in December. thanks to a pick-up in domestic demand and infrastructure output at a three-month high.
The manufacturing sector output of the economy grew at 2.7 per cent versus (-)0.7 per cent. The electricity sector output grew at 6.4 per cent versus 5.2 per cent. The capital goods sector contracted further at (-)1.8 per cent versus (-)0.9 per cent.
The participants of the poll feel that the IIP is likely to improve very gradually. The Consumer Price Index (CPI) is likely to remain above 10 per cent, while the Wholesale Price Index (WPI) may remain benign.
The Reserve Bank of India (RBI) is concerned about the high current account deficit (CAD) and inflationary expectations, said the poll participants. The poll predicts that the RBI may cut repo rate by at least 25 basis points in March.
On Monday, World Bank said the Indian economy will soon get back to high growth path of 6 per cent next year and more thereafter, backing the government's assessment presented in the budget.
"India is going to grow by 6 per cent next year and we hope for even more increase in future," World Bank President Jim Yong Kim said.
Kim, who is on a three-day visit to India, was talking to reporters after meeting finance minister P Chidambaram here. The Economic Survey has projected a growth in 2013-14 in the range of 6.1 per cent to 6.5 per cent. He said although the economic growth has been "somewhat disappointing" at 5 per cent, but the situation would improve as the global market scenario improves.
"Growth rate of 5 per cent here is one that has been somewhat disappointing but we are very encouraged by what has happened and what will happen and we think India will get back to higher levels of growth," Kim said.
Latest Business News
