The country’s factory output declined in November, the government data showed, increasing pressure on the RBI to cut rates in its next monetary policy review later this month.
The index of industrial production came in at (-)0.1 percent against an expectation of a rise of 0.7 percent in a Reuters poll.
The output in the mining sector declined 5.5 percent while that in the manufacturing and electricity sectors grew 0.3 percent and 2.4 percent, respectively, the government press release said.
“In terms of industries, thirteen (13) out of the twenty two (22) industry groups (as per 2-digit NIC-2004) in the manufacturing sector have shown negative growth during the month of November 2012 as compared to the corresponding month of the previous year,” the press release said.
According to the Reuters poll, production was likely hit as Diwali was celebrated in November last year. The year before it was in October.
Planning Commission Deputy Chairman Montek Ahluwalia said that the November print was in line with the internal expectation, while PMEAC chairman C Rangarajan termed it a bit disappointing.
However, both of them agreed on CNBC TV18 that the economy has bottomed out.
Rangarajan expected an improvement in January-March.
Read the full press release here.