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Indian Economy Update

Indian Economy Update:
February IIP fell by 1.2% YoY.
The index of industrial production (IIP) for February 2009 declined 1.2%, as compared to 9.5% growth in February 2008 on back of 1.4% and 1.6% de-growth in manufacturing and mining segments, respectively. During the same month, electricity grew by only 0.7%.
The capital goods and consumer durables witnessed growth of 10.4% and 5.7%, espectively during February 2009. However, intermediate goods, basic goods and consumer non-durables declined by 5.4%, 0.4% and 5.5%, respectively.
The cumulative growth for April-February 2008-09 stands at 2.8% over the corresponding period of the previous year. At the same time, IIP growth for January 2009 has been revised upward to 0.4% from the previously reported negative growth of 0.5%.
The recent fall in inflation would provide greater leeway to Reserve Bank of India for taking softer monetary stance, going forward.