IIP in December likely to remain in range of 2-3% in India: D&B
According to Dun & Bradstreet, the Index of Industrial Production (IIP), which had contracted by 0.1 per cent in November due to poor showing by manufacturing and capital goods sector, is expected to remain in the positive territory during December 2012 primarily due to the base effect.
"IIP growth is expected to remain in the range of 2-3 per cent during December 2012," the report said.
However, IIP is likely to display volatility in the coming period and is likely to remain subdued during the next five or six months as the industrial activity consolidates, the report added.
"The IIP growth is expected to remain subdued during the next five to six months as the industrial activity consolidates before recovering," Dun & Bradstreet India Senior Economist Arun Singh said. Singh further added that "we hope that the measures taken by the government and the expected easing of policy rates by the RBI during the fourth quarter of FY13 will support in reviving the business sentiment and the industrial activity in the medium to long term."
On Inflation, the report said prices are likely to ease going ahead as demand continues to moderate and global crude oil prices stabilise. However, upside risks persists in case the government decides to raise the price of regulated fuels.
However, headline inflation
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