Factory output contracted 0.3% in December after a mild pickup of 1.8% in November while retail inflation accelerated to a 68-month high 7.59% in January is a twin blows to the struggling economy.
Consumer Price Index (CPI) showed retail inflation raced to 7.59% in January from 7.35% in December, strengthening the likelihood of a prolonged pause in interest rates by the Reserve Bank of India (RBI) despite muted growth.
FM on 11th Feb had said the economy was on the mend, relying on seven indicators, including the index of industrial production (IIP), to show that green shoots have started to emerge in the economy.