New Delhi: A positive set of economic data was published on Monday on manufacturing, infrastructure and cars sales ahead of RBI’s monetary policy review. The finance ministry under Arun Jaitley is also pushing RBI to cut interest rates on Tuesday to further give a push to the industrial growth.
India’s manufacturing sector grew fastest in 21 months in November led by robust output and new orders, according to HSBC India Manufacturing PMI. The latest improvement in business conditions was sol-id overall in 13 consecutive months, said HSBC. Consumer goods was the best performing of the broad areas monitored.
HSBC India PMI stood at 53.3 in November significantly higher from 51.6 in October. The uptick in domestic orders was the sharpest even as new export orders remained strong, said HSBC survey. Foreign orders received by Indian goods producers continued to rise strongly in November.
The infrastructure growth eight core industries rose to four-month high of 6.3 per cent in October on the back of better output in coal, refinery products and electricity. The eight core industries, which consist of coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity had contracted by 0.1 per cent in October last year.
Significantly eight core industries comprise nearly 38 per cent of the index of IIP. The coal production output increased by 16.2 per cent in October against 7.2 per cent in September. Electricity output grew by 13.2 per cent in October as compared to 3.8 per cent in September.
The crude oil production increased by 1 per cent in October, while natural gas production declined by 4.2 per cent. The steel production increased by 2.3 per cent and cement production declined by 1 per cent. Major car makers including Maruti Suzuki, Hyundai, Honda and Toyota also reported strong sales for November. Maruti Suzuki’s domestic sales in the month stood at 1,00,024 units, up 17 per cent from 85,510 units in November last year.
According to sources RBI governor Raghuram Rajan met finance minister Arun Jaitley before the monetary policy review. Mr Jaitley had publicly pitched for a cut in interest rate saying it will have positive impact on home and auto loans. However, bankers are divided in their views whether RBI will oblige and cut interest rates on Tuesday....