India’s industrial output grew by a surprise 2.4 per cent in January, data showed Tuesday, suggesting that Asia’s third-largest economy may be on track for a modest recovery.
The increase in January output at India’s factories, mines and utilities was more than double analyst expectations of a one-percent increase, after production shrank for two straight months.
“We are on a recovery path, but that recovery will be very slow. There will be no sharp uptick,” Siddhartha Sanyal, Barclays Capital’s chief India economist, said, a view echoed by other economists.
Any upturn would be welcomed by the Congress-led government which faces voters in polls next year and on whose watch India’s once-booming economy has slowed to 5 per cent in the year to March 2013, the weakest in a decade.
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