Analysts suggest maintaining fiscal deficit at 5.3% will be a challenge for the finance minister.
The January IIP numbers will be announced today. It is expected to be another subdued number this time around, with the CNBC-TV18 poll estimating the IIP to come in at 2.1%, reports Latha Venkatesh.
Sonal Varma, India economist at Nomura Financial Advisory Securities says that though the core sector growth number is weaker than expected, the headline IIP is likely to come with some strength.
December IIP number does not come as a surprise, say experts but it has come at a time when other developed economies have begun to do well
Industrial output in December rose a slower-than-expected 1.6% as against 2.7% in November.
The December IIP numbers have come inline with market expectations at 1.6% year on year, thus confirming a slowdown in the economy. However, CNBC-TV18 spoke to a couple of experts who said the slowdown is evident in the investment side but consumpttion has not seen any dip.