The latest IIP data for the month of October has been released. The data shows that after many years the overall industrial growth in the country has turned negative. Is this the beginning of a prolonged recession in India? Pragoti Editorial team member Subhanil Chowdhury analyzes the latest data for Index of Industrial Production (IIP) ,released for the month of October 2008.
Current economic problems in the Indian economy are being presented by the Government as created entirely by the direct and indirect effects of the global financial crisis. Even the industrial slowdown is being blamed on the adverse impact of the global slowdown upon manufacturing exports. But, as C. P. Chandrasekhar and Jayati Ghosh show in this edition of Macroscan (published in The Hindu Business Line), the official data suggest that the industrial slowdown started well before the effects of the external crisis began to be felt in India.