Fiscal and monetary policies have helped India in dodging the recession and sustaining the economy, the research arm of the rating agency Moody's said.
According to the provisional figures, it could be the fourth month in a row and fifth month in the last fiscal that industrial growth may turn negative. However, after revision the provisional figures for October and January, which were negative, have turned positive.
With inflation crossing over 8 per cent, the Reserve Bank may consider further monetary measures to bring it down, global rating agency Moody's said in a report.Even RBI Governor Y V Reddy in a speech last week had described rise in inflation as "totally unacceptable" as it affects the poor instantly.
The IIP data would be released on March 12 for the period of January 2009. Since October, RBI also has infused over Rs 4,00,000 crore (Rs 4,000 billion) by reducing ratios and short-term borrowing and lending rates.
RBI is likely to keep interest rates stable in the near term, revealed Moody's. It may also ease its monetary policy stance later in the year.
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