A report by Bloomberg said revival of rural consumprion is possible, if the government provided financial package to farmers in the interim Budget.
As against earlier expectations, India’s economic activity shows signs of slowing in December, said a report by Bloomberg. Several reports earlier predicted a quick turnaround in the country's economy.
As per Bloomberg, a gauge measuring overall activity moved two notches lower in December from a month ago. It stressed on the need for a dose of fiscal and monetary stimulus to boost demand and ease inflationary pressures.
It said revival of rural consumprion is possible, if the government provided financial package to farmers in the interim Budget.
Growth in both services and manufacturing slowed in December, with the Nikkei India Composite PMI Output Index falling to 53.6 from a 25-month high of 54.5 the previous month. While manufacturing sector did not see much of job creation, the dominant services sector saw companies hire extra staff, all of which supported business sentiment at a three-month high.
Growth in infrastructure industries - which contributes 40 percent to factory output - slowed considerably in November to the lowest reading in 16 months. It was dragged down by a slump in production of crude oil and fertilizers.
Source: Bloomberg, media reports