India’s industrial activity is expected to remain subdued in the near term, owing to muted domestic demand, weak global economic outlook and uncertainty among businesses over the outcome of Lok Sabha elections, 2019, says a report.
According to D&B Economy Forecast, concerns about the government curtailing its investment due to significant shortfall in tax collections against the target, are expected to keep the industrial activity subdued in the near term.
Dun & Bradstreet (D&B) expects Index of Industrial Production (IIP) to have moderated by 1.5-2 per cent during December 2018.
As per data released by the Central Statistics Office (CSO), industrial output growth dropped to a 17-month low of 0.5 per cent in November on account of contraction in manufacturing sector, particularly consumer and capital goods.
Factory output as measured in terms of the IIP had grown by 8.5 per cent in November 2017.
D&B Lead Economist Arun Singh said the likelihood of a robust economic growth during 2018-19 was dented by unfavourable developments and unexpected shocks that occurred during the year.
He said that the upcoming union budget will set the tone for the economy.
“We believe that there are likely to be some populist measures announced in the Budget, given it is the election year, around the rural and MSME sectors and overall job creation,” Singh said adding that the initiatives around labour and land laws, if taken, would be an added support.
On rupee, the report said that concerns over widening trade deficit, rise in global crude oil prices, and uncertainty over the general election outcome are expected to drag down the domestic currency in the near term, even as a likely pause in the US Fed rate hike is expected to support the local unit.




After making its mark at the Golden Globes, the Queen biopic ‘Bohemian Rhapsody’ is now leading the race at the Academy Awards with 5 Oscar nominations.
Johnny Depp has claimed that he has fresh evidence to disprove his ex-wife Amber Heard’s domestic violence allegations against him.
Bollywood stars Akshay Kumar and Kareena Kapoor took to social media to announce the first day of shoot for their upcoming film ‘Good News’ in an innovative manner.
Bradley Cooper and Lady Gaga starrer ‘A Star Is Born’ has scored 6 nominations at the Academy Awards. While Cooper has now bagged a ‘Best Actor’ nomination for his performance in the film, he had originally passed on the lead role in the movie.
Over 100 Indian firms will feature in the Singapore export forum during a business conclave on Thursday that aims to promote India’s export-oriented industries in the strategic ASEAN region.
Breaking his silence on the controversy following comments by cricketers Hardik Pandya and K L Rahul on his chat show, filmmaker Karan Johar said that he apologises for what happened and admits the conversation “may have crossed boundaries”.
The move of granting 10 per cent quota to general category poor will “backfire” on the BJP as the “bahujans” (majority) are feeling duped, RJD leader Tejashwi Yadav has said.