(MENAFN- Khaleej Times) Output at factories, utilities and mines fell 2.1 per cent from a year earlier after a revised 1.6 per cent contraction in the previous month, the Statistics Ministry said in a statement in New Delhi on Friday. The median of 37 estimates in a Bloomberg News survey was for a 0.8 per cent rise
The central bank's effort to control Asia's fastest consumer price inflation by boosting interest rates has prompted the country's 1.2 billion people to cut back spending as economic growth falters. Singh is under pressure to curb government spending as rating companies threaten to downgrade India to so-called junk status. "Industrial production data will continue to remain weak," said Tirthankar Patnaik, a strategist at Religare Capital Markets Limited in Mumbai. "Even though we have bottomed out, it is the recovery that we are worried about.
The rupee, which has slid about 12 per cent against the dollar in the past 12 months, strengthened 0.3 per cent to 61.905 at the close in Mumbai. The S&P BSE Sensex index advanced 0.2 per cent. The yield on the 10-year government bond maturing November 2023 fell to 8.76 per cent from 8.79 per cent on Thursday
Interest rates will remain elevated as long as surging inflation imperils economic growth, K.C. Chakrabarty, a deputy governor of the country's central bank, said last week. Consumer prices climbed 11.24 per cent in November. Wholesale inflation was 7.52 per cent, a 14-month high, as onion prices tripled from a year earlier
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