Analysts say data another signal economy is doing well, RBI can now further tighten policy
NEW DELHI, June 12: India’s industrial output rose 7 per cent in April from a year earlier, rebounding from the previous month with a resilience that economists said gave the central bank room to tighten policy further. Industrial production outstripped a forecast for annual growth of 5.7 per cent in a Reuters poll, and jumped from an upwardly revised 3.9 per cent in March. The data comes a day after the Reserve Bank of India (RBI) unexpectedly raised its key lending rate for the first time in more than a year, taking it up 25 basis points to a five-and-a-half year high of 8 per cent to contain inflation expectations.
