Posted on Tuesday, 23rd February 2010 by admin
India is posting a strong recovery from the economic recession. However, as the annual budget approaches, inflation is rising sharply and there is growing pressure to withdraw the stimulus measures taken over the last two years.
India’s Index of Industrial Production (IIP) grew by 16.8% year-on-year in December, the fastest rate in a single month for 20 years. The figure reflects the extent to which December 2008 was a particularly bad month, at the bottom of the recession. Yet the rise confirms a strong upward trend dating back to the summer of 2009. The consolidated increase in the IIP from April to December 2009 was 9% year-on-year, and October and November also recorded double-digit rises.