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IIP depicted dip

According to the data released by the Indian Ministry of Commerce on 12 July 2010 the index of industrial population (IIP) for April moved downwards and reached 16.5% as against the figure 17.8% released earlier. The industrial output that was far below the market expectations for the month of May hinted at moderation in the pace of economic growth.

Oct 13, 2010 14:52 IST
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According to the data released by the Indian Ministry of Commerce on 12 July 2010 the index of industrial population (IIP) for April moved downwards and reached 16.5% as against the figure 17.8% released earlier. The industrial output that was far below the market expectations for the month of May hinted at moderation in the pace of economic growth. Factory output showed an annual expansion of 12.3% in May and mining and power generation incresed by 8.7% and 6.4% from May 2009. Moderation in the manufacturing sector expansion can be contributed to slower growth in sub-sectors like food products, metals, machinery and transport equipment production. According to economist believe the Reserve Bank of India (RBI) would hike key policy rates to tame inflation.