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Green shoots

The sudden 5.9 per cent rise in factory output in November 2011 is hopefully an indication that the economy is finally beginning to look up after five months of sluggish growth. It will be, however, too early to conclusively say so since capital goods production — an indicator of investment activity in the economy — dropped in November too despite the jump in industrial output. In October, capital goods output had contracted 25 per cent, but the fall, at 4.6 per cent, was not so steep in November. Besides, the integrity and quality of data in India is not so remarkable. Having said that, it is imperative every opportunity is seized to nurture the greenshoots.

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