India’s Production Declines Most in Almost 16 Years
India’s industrial production fell the most in almost 16 years in December as the global recession crimped exports, intensifying pressure on policy makers to implement measures to stimulate local demand. Bonds rose.
Output at factories, utilities and mines dropped 2 percent from a year earlier after a revised 1.7 percent gain in November, the Central Statistical Organization said in New Delhi today. Economists expected a 0.4 percent contraction.
Waning demand is forcing companies such as Tata Motors Ltd. to scale back output and fire workers. Job losses may prompt Prime Minister Manmohan Singh, seeking re-election before May, to boost spending in next week’s interim budget to help protect India from the world’s worst financial crisis since World War II.