India's Industrial Output Declines 5.1%

[Devil Soul]

India's Industrial Output Declines 5.1%
NEW DELHI, Dec 12, 2011 (AFP) -India's industrial output shrank 5.1 percent year-on-year in October, well below expectations and the first drop for more than two years, data showed Monday.
The October figure marked a sharp slump from the 1.9 percent expansion posted in September, reflecting the impact on the economy of a series of interest rate rises aimed at curbing inflation.
Manufacturing output, which accounts for around 75 percent of the industrial index, declined 6.0 percent year-on-year.
The sluggish output figures are likely to further undercut hopes that emerging markets such as India can power global growth as Europe and the United States struggle.
The weak figures buttressed expectations that India's hawkish central bank would hold off hiking interest rates to combat inflation even though it remains stubbornly high at nearly 10 percent.
A quarter-point rise by the Reserve Bank of India in October was the 13th rate hike since March last year.
The rupee has meanwhile hit record lows against the US dollar, as overseas investors abandon emerging markets and seek safe havens against global shocks.
In its mid-year analysis of the economy last week, the finance ministry forecast the economy to expand 7.5 percent in 2011-12, after growth slumped to a two-year low of 6.9 percent in the second financial quarter.
"The sharply deteriorating global economic environment has had a dampening effect on India," the ministry said.
The economy grew 8.5 percent in the previous financial year.
Some private economists tip expansion this year to be as low as 6.5 percent, with the country shifting to a new, slower growth trajectory.

 

[RoYaL~GuJJaR]

RBI needs to step in!!!

And gov needs to take adequate measures to boost the industrial output!!

projected growth for next year is still at 7.5% but gov needs to take strong measure so that it should not fell below 8%.

F%$k European crises!!

 

[EAsian]

1 dollar = 52.835 rupee now.

 

[EAsian]

Rupee hits new record low of 52.77 per dollar
12 Dec, 2011, 1659 hrs IST,*Agencies

MUMBAI: The Indian rupee slid to a record low of 52.77 on Monday as signs of a sharp slowdown in Asia's third-largest economy prompted investors to buy dollars.

Traders said possible buying by local oil importers, the biggest buyers of dollars in the local forex market, also pressured the currency.

At 4:53 p.m., the partially convertible rupee was at 52.76 per dollar, after closing at 52.03/04 on Friday.

RBI in a bulletin said that it had intervened in the forex market in October, for a second consecutive month, after the rupee came under withering selling pressure on deepening domestic and global growth concerns.

The Reserve Bank of India (RBI) has always maintained that it does not target any specific exchange rate on the rupee and only intervenes to prevent excessive volatility in the foreign exchange market.

The rupee had fallen to as low as 50.32 per dollar on Oct. 21, and is down nearly 17 percent from its July peak this year. The unit touched a record low of 52.73 on Nov. 22 and losing 7 percent in the month, its worst fall in 16 years.

The local currency is the worst performing unit against the dollar among major Asian peers this year and investors continue to stay bearish on the rupee, a Reuters poll last week showed.

In fact, India may face its worst financial crisis in decades if it fails to stem a slide in the rupee, leaving the central bank with a difficult choice over how to make best use of its limited reserves to maintain the confidence of foreign investors.

RBI sold $943 million in October, but did not buy any dollars, as in the preceding September, where it had sold $845 million dollars and not purchased any, the bulletin showed.

The central bank's dollar sales in September had been its first after November 2010, RBI data showed.

 

[utraash]

RBI needs to step in!!!

And gov needs to take adequate measures to boost the industrial output!!

projected growth for next year is still at 7.5% but gov needs to take strong measure so that it should not fell below 8%.

F%$k European crises!!

Dear I know Gov. will not take any steps untill water flows above their head.... Headless chickens running this Gov........

 

[kawaraj]

Global hot money flooding out.

Growth could be below 6 percent if this continues.

 

[Zabaniyah]

Jeez...the crisis in the West is affecting everyone. Even China.

 

[harpoon]

Jeez...the crisis in the West is affecting everyone. Even China.

Some posters here conveniently forget that.

 

[HongWu]

You know what is so creepy? These indians talk a lot about their economic growth but all they've done is purchase and consume. They don't manufacture anything, there are no factories -- they don't do any urban construction, there are no modern cities -- they haven't invented anything either, the crown jewel of indian engineering is its civilian aerospace. Do they get all their US dollars from selling natural resources?

When you spend and spend by borrowing, eventually you run out of money and your currency collapses. This drop could be accelerated if some clever person on Wall Street (like Soros) is shorting the rupee because they can see the fundamental weakness. Maybe they arrested that indian guy on Wall Street just to pave the way for just this kind of curency attack.

 

[IndoCarib]

You know what is so creepy? These indians talk a lot about their economic growth but all they've done is purchase and consume. They don't manufacture anything, there are no factories -- they don't do any urban construction, there are no modern cities -- they haven't invented anything either, the crown jewel of indian engineering is its civilian aerospace. Do they get all their US dollars from selling natural resources?

When you spend and spend by borrowing, eventually you run out of money and your currency collapses. This drop could be accelerated if some clever person on Wall Street (like Soros) is shorting the rupee because they can see the fundamental weakness. Maybe they arrested that indian guy on Wall Street just to pave the way for just this kind of curency attack.

India among world’s top 10 manufacturing nations: UNIDO

India among world

 

[Bombay Dude]

You know what is so creepy? These indians talk a lot about their economic growth but all they've done is purchase and consume. They don't manufacture anything, there are no factories -- they don't do any urban construction, there are no modern cities -- they haven't invented anything either, the crown jewel of indian engineering is its civilian aerospace. Do they get all their US dollars from selling natural resources?

When you spend and spend by borrowing, eventually you run out of money and your currency collapses. This drop could be accelerated if some clever person on Wall Street (like Soros) is shorting the rupee because they can see the fundamental weakness. Maybe they arrested that indian guy on Wall Street just to pave the way for just this kind of curency attack.

World's Largest Dry Dock, World's Largest Oil Refinery, World's Largest Aluminium Roll Maker(Hindalco), Some of the World's Largest Steel Companies out here!

 

[SenLin]

Lets us just say that both China & India are fucked if the EU & US can't stop falling into another recession.

 

[Aramsogo]

U

Lets us just say that both China & India are fucked if the EU & US can't stop falling into another recession.

India, absolutely. China, no way. $3.2 Trillion in reserves means China has nothing to worry about.

 

[Aramsogo]

World's Largest Dry Dock, World's Largest Oil Refinery, World's Largest Aluminium Roll Maker(Hindalco), Some of the World's Largest Steel Companies out here!

India is not No. 1 in the world in shipping building, oil refining, aluminum smeltering or steel production. Not even close. More bogus Indian claims.

 

[reminder]

India is not No. 1 in the world in shipping building, oil refining, aluminum smeltering or steel production. Not even close. More bogus Indian claims.

Feeling same about you.