- Strong growth in manufacturing pushes industrial growth in November
- GDP is expected to grow at 6.5% this fiscal
- Analysts expect RBI to keep interest rate unchanged this year
Strong growth in manufacturing helped push up industrial growth in November. Manufacturing grew 10.2 per cent against 2.5 per cent in October. Mining grew at 1.1 per cent in November while electricity grew at 3.9 per cent.
The GDP or gross domestic product is expected to grow at 6.5 per cent this fiscal (2017-18), according to the first advance estimates of the Central Statistics Office, released earlier this month. The economy had clocked a 7.1 per cent growth rate in 2016-17.
Many analysts expect RBI to keep interest rate unchanged this year due to rising inflation. "It's slightly higher than our estimate. We believe that current rate easing cycle by the central bank is over for now. And, with inflation expected to continue to taper up all the way until the middle of the year, we do not expect any kind of changes in the policy rate until the end of the year," says Tirthankar Patnaik, India Strategist at Mizuho Bank.
Last month, the Reserve Bank of India held its policy rate and reiterated a neutral stance but said that "all possibilities are on the table" depending on how price pressures and growth pan out. For the six months through March, the RBI slightly raised its inflation projection - already above its 4 percent medium-term target - to 4.3-4.7 percent.