India's industrial production zooms ahead, fruitful talks with Japan
For the week ended December 12, 2015:
The big data story was the 9.8% growth seen in the Index of Industrial Production (IIP) on a year on year (yoy) basis in October. While a weak base as well as festive demand propped up growth during the month, continued positive growth in both the capital goods and consumer goods segment, however, portends well for economic recovery in India.
Further corroboration of some recovery is evident from data on indirect tax collections, which also continued to show good growth – increasing by over 24% in November from the previous year.
Despite a weak global economy, exports of IT and ITeS sectors showed growth of 14.8% yoy in 2014-15 as per RBI’s recently released data, adding a still more positive note to the week’s trends.
Area under rabi crop also advanced significantly in the past week, covering for at least some of the lag seen in the past weeks. Area sown is now 9% behind that during the corresponding period of the previous year, down from a 16% lag during the previous week.
Japanese Prime Minister (PM) Shinzo Abe’s recent visit to India resulted in fruitful talks between the two countries, raising the status of the relationship to a Special Strategic and Global Partnership. It is anticipated that Official Development Assistance from Japan to India is now expected to reach JPY 400bn, the largest ever for India.
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