RBI has wrecked Indian industry

The last year was bad for Indian industry. It was made to be so. I have been predicting for a long time that India was doomed if the RBI persisted with the kind of monetary policy it did: 13 hikes since March 2010. Finally, the government confirmed the doomsday prophecy: industrial production had shrunk 5.1 per cent in October. But there was a much bigger shock: capital goods had shrunk 25.5 per cent. Every sector is shrinking, except power, which too will due to the constraints on coal supply and delay in environmental clearances.

Read Full Story>>