.............That explains why finance minister Pranab Mukherjee was so jittery last week when T.C.A. Anant, secretary in the ministry of statistics, admitted something went horribly wrong in February. The ministry revised January’s index from the very encouraging 6.8 per cent to a measly 1.1 per cent. (Manufacturing is 40 per cent of the Indian economy and 15 per cent of its jobs). The revised IIP data was a key factor for the Reserve Bank of India (RBI) to cut the policy rate by 50 basis points—the first time in three years. It did so, RBI governor D. Subbarao says, with an eye to slipping growth.
Of course, if the RBI had known this data from the start, would it have acted earlier?............
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