Industry growth @ 4.2%

 

Industrial output growth held steady in July, boosted by healthy expansion in the manufacturing, capital goods and consumer durables segments, signalling that the key sector may be on the path to revival.
The index of industrial production rose 4.2% in July compared to an upwardly revised 4.4% in the previous month and 0.9% growth in the year-ago period.
The strong numbers for the second successive month brought cheer to policymakers, who said the numbers display signs of an improving economy .
Data showed the manufacturing sector rose 4.7% in July compared to a decline of 0.3% in the same month last year, while the capital goods segment, which is a barometer of industrial activity , rose 10.6% compared to a decline of 3%.
The durables sector rising 11.4% compared to a contraction of 20.4% in July 2014. The consumer nondurables sector remained a worry, contracting 4.6% year-on-year compared to a growth of 5.2% in July 2014.
An analysis of the data by the finance ministry said the manufacturing sector is slowly emerging as a leader of industrial growth.
Economists said the data showed some promise.
A string of recent data has pointed to green shoots of recovery in the economy and the government is confident of achieving 8% growth in the current fiscal. Sliding inflation has also triggered hopes of a reduction in interest rates. The Reserve Bank of India will review monetary policy later in the month and pressure has mounted on the central bank to cut rates and help boost growth.

Modi tweets Sorry Chandigarh

An upset Prime Minister Narendra Modi ordered an inquiry into Chandigarh going into a complete lockdown on account of his four-hour visit to the city, inconveniencing lakhs of citizens. What appears to have particularly displeased the PM was schools being forced to shut down.
“The inconvenience caused to citizens in Chandigarh, especially shutting of schools due to my visit is regretted. It was totally avoidable,“ Modi tweeted immediately after he left the city. “An inquiry will be held & responsibility will be fixed for the inconvenience caused to the people of Chandigarh,“ he tweeted further.
Modi was here between 9.45 am and 1.30 pm for a slew of events, but that was enough for authorities to order an unscheduled holiday for all the 187 public and private schools. This was done besides the usual security drill -blocking key thoroughfares and shutting parking lots on VIP routes whenever the PM's cavalcade passed, causing long traffic jams.
During his Friday trip, Modi inaugurated the Rs.452-crore international terminal of Chandigarh airport at Mohali, launched a housing scheme, attended the 34th annual convocation of PGIMER and addressed a rally. Speaking at the public meeting, Modi attacked the Congress saying it was blocking the country's growth by not letting Parliament function. He added that the behaviour of the opposition MPs smacked of arrogance and that voters must not forgive them. “Disregarding 400-odd parliamentarians, 40 MPs want to stall the future of India,“ he said. “They (the Congress MPs) have conspired against the ideals of democracy and want to insult voters,“ the PM added.The Congress has 44 MPs in Lok Sabha while BJP has 282. Overall, the NDA alliance has 336 MPs.

Nashik gets the Bullet Train connection

The Japan International Cooperation Agency (JICA) has agreed to fund the Mumbai-Ahmedabad bullet train project in which Nashik will be a part of the route.
The journey would get a little longer but would bring vast benefits to Nashik, which today is three hours away from the city by road. Mumbai , Nashik and Pune form an important industrial triangle.
The bullet train corridor will also pass through Surat and Dang district of Gujarat, helping strengthen business activity .
Another important infrastructure project got a boost when an agreement was signed between chief minister Devendra Fadnavis and JICA on Friday on the Mumbai Trans-Harbour link to connect Sewri in the city to Nhava Sheva on the mainland.
As JICA assured Fadnavis it will fast-track the funding for the Rs.11,000 crore MTHL, work on the 22 km oversea bridge should begin early next year after the launch of a bidding process in December.
JICA agreed to offer a longrange loan for the mega project at an interest rate of 1.75%.
For Metro III, or the Colaba-Bandra-Airport-SEEPZ line, the Japanese agency had already agreed to extend funding. JICA has already proposed to start public consultations on the Metro next week.
“Chief minister Devendra Fadnavis has proposed that the bullet train from Ahmedabad to Mumbai should go via Nashik, to which JICA, the funding agency for capital intensive projects, has agreed,“ a CMO official said.
Fadnavis is currently in Japan to finalize industrial and financial agreements. Fadnavis had a ride on a bullet train with the Japanese minister on Thursday . Vice minster for international affairs of ministry of land, insfrastructure and transport, and tourism Toshiya M Orishige briefed Fadnavis about the development and operation of bullet trains on their journey to Tokyo and took the CM to the driver's cabin. “JICA has also agreed to support new tourism infrastructure in Ajanta, Lonar,“ Fadnavis tweeted.
Fadnavis on Thursday unveiled the statue of Babasaheb Ambedkar on the Koyasan University premises in Wakayama prefecture of Japan.
The statue was gifted by the state to the university , which is celebrating the 1,200th year of its foundation. Wakayama governor Yoshinobu Nisaka, state industry minister Subhash Desai, parliamentarians Ramdas Athavale and Amar Sabale, and former minister of state Sulekha Kumbhare were present at the event.
The CM invited the people of Japan to visit the state's Buddhist circuit, which includes Ajanta and Ellora caves.
An agreement was also signed between Koyasan University and Dr Ambedkar Marathwada University of Aurangabad for bilateral cooperation in studies and research activities.

Slowing Demand

FII outflows

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Macroeconomic Snapshot