» India’s Industrial Production: Strong? Decision Economics

India’s Industrial Production: Strong?

Posted December 12, 2012 by rvillareal

  •  October’s industrial production stronger-than-expected. A constructive result, but one that speaks of stabilization rather than a clear turnaround and recovery.
  • The strong result alleviates some immediate pressure on the RBI to ease, but the RBI, despite an improving WPI, remains in a near-paralysis state when an easing stance still appears needed.
  • India’s industrial result however, continues to be threatened by a continued fall of exports given current trends in Europe and China, and the Fiscal Cliff related risks in the U.S.
  • All in all, the Indian economy continues to be weak and October’s results may imply a possible turn towards easier money in the first quarter of 2013.

[private]12-12-12–EMG INDICATORS AND INSIGHTS (India Industrial Production)[/private]