IIP down & CPI increases

According to government data, India's industrial production fell 0.6% in December from a year earlier weighed down by manufacturing, which constitutes about 76% of industrial production. During April-December period, industrial production expanded an annual 0.7%. In yet another disappointment for the street after IIP numbers, annual rate of inflation, based on the consumer prices index (CPI), increased in the month of January 2013 at 10.79% as compared to 10.56% during December 2012.

Union Finance Minister P Chidambaram will meet the State Finance Ministers on 14th February to seek approval on the design of Goods and Services Tax (GST) Bill, so that a broad outline of the indirect tax regime can be included in the 2013-14 Budget. Last month, the Empowered Committee of State Finance Ministers had reached a broad consensus on the design of GST, under which the states will be free to decide on the time of its introduction. The committee has also agreed for a single rate of GST and there would be a floor rate with a band, giving freedom to states to fix their own rates.