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Indian Gov Stimulus helped Revive Industrial Production in 2.7%
"Industrial activity in India will gain more traction as the favorable effect of lower bank lending rates and a continuing fiscal boost offsets a still-weak export sector," said Rajeev Malik, a regional economist at Macquarie Group Ltd. in Singapore. The rise in output "pretty much destroys the probability of further rate cuts."
India's industrial production increased at the fastest pace in eight months as record-low interest rates and government stimulus measures helped revive demand and investment. Output at factories, utilities and mines jumped 2.7 percent in May from a year earlier after a revised 1.2 percent gain in April, the statistics agency said in New Delhi today. That was more than double the 1.3 percent increase expected by economists. Economies across Asia are starting to show signs of recovery from the worst global recession since the Great Depression, prompting policy makers to stop lowering interest rates. The World Bank last month said India may overtake China next year as the world's fastest-growing major economy.read source article