Right In The Middle Of An Inflationary Crisis India's Industrial Production Just Nosedived

india food riots

Photo: AP

India’s industrial production plunged to a year-over-year gain of 2.7% in November, according to the Times of India. That may not seem like bad news, but in October, industrial production rose by 11.29%, so this is well off the country’s growth pace.More alarming may be the actual slowdown in the manufacturing of consumer non-durables, which declined by 6% in November.

India’s government has been battling a rise in inflation that has seen food prices surge 18.32% and food price protests sweep its streets.

If food prices continue to rise, which expectations indicate they will, India’s Central Bank will be torn on whether or not it should raise key interest rates. If they do, food price spikes may slow, but so might a manufacturing sector under threat of slowing down. If they don’t, food prices may continue to spike, and manufacturing may still slow.

Check out photos of the food riots sweeping the streets across the world >

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