Industrial production in India contracts sharply

India's index of industrial production for November 2013 left a lot to be desired as it contracted sharply by 2.1%. This was considered to be the lowest in 6 months and highlights that the Indian economy is not out of the woods yet. The reason for the contraction was attributed to the poor performance of the manufacturing sector and lower output of consumer goods, particularly white goods. This coupled with the fact that retail inflation has also slightly reduced has raised hopes of the RBI going in for a rate cut. Whether the central bank will be in a mood to relent remains to be seen. Meanwhile, India's peer China showed why it is the manufacturing powerhouse in the world as industrial production in the country grew faster than the rest of the pack.