False dawn

On the face of it, industrial growth, at 5.9 per cent in November, has registered a sharp turnaround, coming as it does on the back of a minus 4.7 per cent level for the preceding month. This, along with a 9.7 per cent jump in the Centre's excise revenues in December as also HSBC's Purchasing Managers' Index for India posting its biggest rise since July, lends credence to the view that the threat of an entrenched slowdown is exaggerated. That being so, it is argued that the Reserve Bank of India (RBI) should persist with its current anti-inflationary stance.

Read Full Story>>