The Index of Industrial Production (IIP) for the month of December contracted at (-)0.6% versus (-)0.1% in the month of November. This is way below an ET Now poll estimate of 1.3%. According to the data, the IIP in the April-December period now stands at 0.7%.
The manufacturing sector output contracted at (-) 0.7% versus a growth of 0.3% in November. Factory output has been hurt by relatively weak global trade, especially from Europe, India's largest trade partner, with the debt-ravaged euro zone economy expected to contract again this year.
Meanwhile, ahead of the January inflation readings Reserve Bank Governor D Subbarao had said the price rise index which slowed to a three-year low of 7.18 per cent in December, is "still high."