IIP grows at 2.4% in January

The Index of Industrial Production (IIP) rose a modest 2.4% in January, reversing the falling trend seen in the previous two months. The return to positive territory was on the back of higher manufacturing sector output and electricity generation, but it does keep the pressure on RBI to cut key policy rates next week.
Although the overall numbers will provide some comfort, there are several reasons to worry and it may be early to term it a turnaround, warned industry captains and economists.

Even in the coming months, the recovery is unlikely to be sharp.  As a result, most economists are betting on a 25-basis-point cut next week, especially when overall growth is still subdued.
Higher interest rates and lower demand in the backdrop of slower economic growth have prompted companies to go slow on adding capacity. This was reflected in lower production of machinery, office equipment and electrical equipment, the data showed.