The RBI needs to act

The index of industrial production, which was negative in March, was positive in April — but just barely. It rose by 0.1 per cent, according to figures released on Tuesday, compared to 5.3 per cent a year ago. Manufacturing output grew at only 0.1 per cent as well. Mining contracted by 3.1 per cent, intermediate goods by 1.4 per cent, and capital goods by 16.3 per cent, revealing that the backbone of the manufacturing economy is weakened.

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