April industrial outputâ€”as measured by index of industrial productionâ€”was almost flat at 0.1% year-on-year, way below the CNBC-TV18 poll estimate of 1.08%. The only consolation was that the number was much better than the (revised) 3.2% decline in March.
Amid rising concerns over the country's economic growth prospects, industry leader Deepak Parekh Monday said that the only thing holding India back at this juncture is "lack of political will" and investors can no longer be placated by talks of "long-term fundamentals".
As seen in the above graph barring the IIP numbers for March 2012 in which it printed a contraction of 3.5%, in all the remaining months whenever we have seen the core industries data releasing in the positive territory, the following IIP data have always released positive.
Indian industry in the first month of the current year is likely to continue its sluggish growth. So, the IIP data for April, which will be announced today, is expected to come in at 1.08% against a 3.5% contraction in March, reports CNBC-TV18's Latha Venkatesh.
Sunil Kant Munjal, chairman, Hero Corporate Services tells CNBC-TV18 that rate-cuts by the RBI alone do not suffice to boost growth. Fiscal initiatives and decisions by the government are equally vital.
Finance Minister Pranab Mukherjee rejected S&P's warning that India could be the first BRIC nation to falter and fall below investment grade in the ratings.
The report says that India maybe the first BRIC country, but it is also not surprising as Brazil is in a sweet spot, China‘s growth is well known and Russia is an oil producer, so they are obviously on a much better wicket. The statement does not say much and I am not worried about that statement.
Experts tell CNBC-TV18 that S&P's warning will serve as yet another wake up call for the government, and that they do not see a trigger for a downgrade.
The industry chamber CII has called for a comprehensive economic revival package to improve industry sentiments, cautioning that economic growth rate in the current fiscal may fall below 6.5%.
A rate cut by the Reserve Bank of India (RBI) next week will not be enough to spur banks to lower lending rates immediately, bankers said on Monday.
Dismissing concerns that India's growth rate may drop below 6.5%, Finance Minister Pranab Mukherjee today said 2012-13 would be the turnaround year for the economy.
There are signs that the economies of two of the world's leading emerging powerhouses, India and China, are starting to falter, while Europe continues to be handicapped by its debt woes, the latest report from the OECD showed on Monday.
Slowing GDP growth and political roadblocks to economic policymaking are just some of the factors pushing up the risk that India (unsolicited BBB-/Negative/A-3) could lose its investment-grade rating.
Terming decline in economic growth rate to nine-year low of 6.5% in 2011-12 as "disappointing", Finance Minister Pranab Mukherjee on Monday said the government will take "necessary steps" to improve growth.
After a surprise interest rate cut by China, all eyes are now on another Asian economic powerhouse, India, which is also expected to cut rates to boost flagging growth when its central bank meets in over a week`s time.
Chief economic advisor Kaushik Basu has warned that if the Eurozone breaks up finally, it will be more disastrous than the 2008 global financial crisis triggered by the fall of the Wall Street banks, from which the global economy is yet to recover.
Amid concerns over moderation in economic growth and rising bad loans, Finance Minister Pranab Mukherjee will meet on Tuesday with heads of public sector banks to discuss credit flow to productive sectors and review their performance in the last fiscal.
Amidst the flurry of gloomy macroeconomic predictions after the dismal nine-year low growth numbers last fiscal, there is some silver-lining as lower current account deficit (CAD), which according to a Citi estimate, is set to fall below 3.5 percent of GDP this fiscal.
With the aviation sector facing acute crisis, Civil Aviation Minister Ajit Singh is unhappy over the recent increase in service tax on air tickets and high jet fuel price and would take up the issue with Prime Minister Manmohan Singh for a re-look into the matter.
Former RBI deputy governor and economist, Rakesh Mohan offers his perspectives on the new set of reforms that can put growth back to 8%
Vinayak Chatterjee, chairman, Feedback Infrastructure Services explains to CNBC-TV18 that a board to fast-track projects in the infrastructure sector is the need of the hour.
Days ahead of credit policy review by the Reserve Bank, Chief Economic Adviser Kaushik Basu today said "out-of-the-box" thinking is needed in the monetary policy and favoured slashing interest rates to boost sagging economic growth.
There has been a lot of talk about India engaging with Pakistan on doing business. But, while we have seen this discussion happen in the past, this time the effort seem to be more credible and more real.
Crisil managing director and CEO Roopa Kudva explains to CNBC-TV18 the considerable fall in India‘s growth potential indicated by the fourth quarter data which posted a nine-month low of 5.3%.
India's industrial output probably eked out a small rise in April over a year earlier of just 1.7 percent after falling in March, a pace suggesting little pick up in the economy after a slump in growth at the start of the year.