Preview: India industrial output slump likely over, edged up in December
Asia's third-largest economy is headed for even worse than anticipated growth this fiscal year ending in March, well below the earlier projections for a decade low pace, according to preliminary data released on Thursday.
So since late last year the government has been introducing a slew of reforms to support the slowing economy, including cutting fuel subsidies, hiking rail passenger fares and opening the retail sector to foreign investors.
Still, investments have shown little sign of increasing. Capital goods production, a measure of investments in factories, shrank 4.7 percent in November, having grown just once in the eight months until then.
In its own bid to revive the flagging economy, the Reserve Bank of India cut the key repo rate for the first time in nine months, by 25 basis points to 7.75 percent in January, but warned there was limited room for further easing.
Be the first to comment.