Belying all projections and the optimism following two stimulus packages, industrial production declined by 2% in December, but the government was confident that the numbers for January would improve. As industrial growth turned negative for the second time in the first nine months of the current fiscal, analysts said the government would have to revise its projections that pegged industrial production to rise by 4.8% in 2008-09. The overall projected 7.1% GDP growth for 2008-09 may also have to be revised downwards, economists said. Furthermore, they saw the need for tax cuts in the interim budget on February 16 and rate cuts by the RBI to boost slowing demand.
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