As the monetary and fiscal stimuli work their way through, and if calm and confidence are restored in the global markets, we can see economic turn around later this year. After averaging nine per cent growth over the last four years, economic activity in India has slowed since the last quarter of 2008. The outcomes in recent months have been mixed.
While overall industrial production fell again in March, cement and steel production have shown some preliminary signs of upturn. Segments in the automobile sector, particularly two and three wheelers and passenger cars, are showing modest revival of demand. The industrial and business outlook is improving.