The upturn may be delayed if the market remains pessimistic, say B B Bhattacharya & N R Bhanumurthy
The recent data on Index of Industrial Production (IIP) has shown a decelerating trend. The average growth rate of IIP in the first five months of the current fiscal year 2000-01 is only 5.3 per cent against 6.2 per cent in the comparative period last year. This is quite contrary to the expectations of high industrial growth assumed in the Budget 2000-01. This raises two questions.
First, is it the beginning of a new industrial recession? Secondly, what is the possibility of a quick industrial recovery to achieve the budgetary expectations ?
The finance minister, while addressing the Economic Editors