Manufacturing Sector Picks Up as Orders Rise

In April the new order sub index rose to 61.1 but the factory output index fell again, instead of remaining above the 50 mark. The actual industrial output data is putting up the drab picture of the slow growth of factory production of 4.1 percent which is a little less than the expected 6.6 percent.

For the fifth straight quarterly Reuters poll, the economists had to cut their GDP forecasts and now they are expecting a growth of average 7.1 percent for the next fiscal year of March 2013. On the other hand, government is expecting an economic growth of 7.6 percent for the same given period but even that is less than the double digit rate before the onset of global financial crisis in 2008.

Indian economy has been facing a lot of troubles as it has been struck with one after another thunderbolt of high inflation, tight monetary policy, weak global economic conditions and the tax implementation of fiscal policies and reforms.