Debilitate the economy

Treasure tight condition - still struggling to fit the hands of government management of the economy is running out . Three months later crashed again is producing factories . In contrast, retail prices of onion and tomato prices have risen , has taken a nine -month high . Economic situation has raised the hackles of the Reserve Bank .
The poor performance of basic industries and factories sharp decline in production in October index of industrial production ( IIP) has decreased by 1.8 per cent . Factories in the same month last year, an increase of 8.4 per cent .

Mining and manufacturing performance is affected by the performance of factories . 75 per cent of the industrial production index in the manufacturing sector . The seven- month period from April to October , industrial production grew by 0.3 per cent decline . Among consumer durable industry production declined by 12 per cent .
Retail prices of products is proving a headache for the government . In November, onions , tomatoes skyrocketing prices of fruits and vegetables including retail inflation rate has reached nine -month highs of 11.24 per cent . This month, 61 per cent increase recorded in the prices of vegetables , while fruit prices have jumped 15 per cent .
The latest statistics on industrial production and retail inflation, the central bank has created confusion . Industrial production slows down the pace of reduction in interest rates, demand from industry shake. In contrast, higher retail inflation rate rises by the Reserve Bank to prevent it . Although there are signs that values ​​are knowledgeable , they have great concern for inflation, RBI . RBI 's mid-quarter monetary policy review on December 18 . The last two reviews to tame inflation , the central bank has hiked the repo rate . Raghuram Rajan said on Wednesday the central bank RBI Governor of the economy in light of the latest figures take a decision on interest rates .