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    India output growth surprises at 6.8%

    Author: AFP
    Monday 12th March 2012

    India's industrial output rose by 6.8 per cent year-on-year in January, defying high interest rates and a global economic downturn.

    The increase, above forecasts of 2.1 per cent, was also significantly above the 1.8 per cent expansion logged in December and mainly driven by a strong manufacturing performance.

    Manufacturing production grew 8.5 per cent in January, while electricity output was up 3.2 per cent.

    The central bank has increased interest rates 13 times since March 2010 to battle inflation, but has kept them on hold since late last year amid signs price rises were cooling and the economy weakening.

    Monday's data was welcomed by the government, which forecast last month that in the year to March economic growth would fall below seven per cent for the first time since the global financial crisis.

    Asia's third-largest economy will probably grow 6.9 per cent, the government said, far below last year's budget projection of nine per cent and down from the previous year's 8.4 per cent, the government said.

    Analysts have said they expect India's central bank to start unwinding interest rates from four-year highs as early as this week to spur the economy.

    Tags: Economy, India
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    Based on information provided by and with the permission of the Western Australian Land Information Authority (2015) trading as Landgate.