Mr. Siddharth Shankar, Expert Economist quote on IIP Numbers

“While the numbers may look good but to my mind they still represent a slowing Indian economy. Factory output will remain subdued in India for most of this year and maybe a year more. Even if see a rise in output, overall growth will remain weak. To my mind RBI has almost no room to cut rates and monetary action will not really help the economy. The inflation numbers that will come now should be higher and would probably be the highest amongst the emerging economies. While we talk of policy action from the government’s side, I think they too have a very little room to make policy changes. Government cannot come with policies that are detrimental to the nation for the sake of industry. To my mind Industry has to do its bit in improving it productivity and efficiency. While central banks like The Bank of Korea, the People’s Bank of  China, the European Central Bank and the Bank of England all eased monetary policy this month the case with India is different, we have a consumer level inflation of about 12%.”