India’s industrial output grows at surprisingly slow 3.4% in June

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India said on Tuesday (Aug 12) industrial output expanded by an unexpectedly slow 3.4 per cent in June from a year earlier while inflation accelerated, dimming prospects of a quick economic recovery.

The growth in output by India’s mines, factories and utilities marked the third straight month of industrial expansion in Asia’s third-largest economy. But the 3.4-per cent annual growth in June undershot market forecasts of a 5.2-per cent rise and was lower than the 4.7 per cent increase logged in May.

In other bad news for the new right-wing government, hoping to steer the country out of its longest period of sub-five per cent growth in a quarter-century, consumer price inflation also picked up pace.

Consumer prices rose 7.96 per cent in July from a year earlier, far above the six-per cent target set by the hawkish central bank and exceeding the previous month’s revised 7.46-per cent rise. The higher-than-expected consumer inflation means that the central bank will have less room to ease high interest rates to spur economic growth.

The economy grew by 4.7 per cent in the financial year to March 2014, its second consecutive year of sub-five-per cent growth.

The Bharatiya Janata Party government led by Prime Minister Narendra Modi that took power in late May has been hoping to see “green shoots” of recovery. Modi won the biggest parliamentary majority in three decades after campaigning on a platform to revive the economy.

Some economists have warned that it will take time for companies to ramp up expansion plans and for consumers to regain confidence. Still, economists are hoping that an upturn in the global economy will create more demand for Indian exports.

Modi also has been seeking to sweep away bureaucratic and other hurdles to foreign investment that is urgently needed to upgrade dilapidated ports, roads and other infrastructure.

 

 

 

 

Source : Channel News Asia | August 12, 2014

Thomas D’Innocenzi

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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