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Economy11/02/2012  04:58 PM

It is heartening to note that the consumer goods sector has performed well, probably reflecting the moderation in food inflation

The dip in industrial growth in December 2011 continues to reflect the weakness in investment demand that we have highlighted earlier. This reinforces the need for measures to accelerate the implementation of large projects. Such measures are necessary to shore up the investment-GDP ratio which has been slipping over the past three years. The RBI also needs to move quickly from its pause on interest rate increases to a policy of cutting rates to encourage investments. It is heartening to note that the consumer goods sector has performed well, probably reflecting the moderation in food inflation.

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