A mixed picture: Sustained economic recovery is still uncertain

The consumer price index (CPI)-based inflation rate slowed to a four-month low of 4.4 per cent in February

It was a double bonanza for the Indian economy early last week, as two key macroeconomic indicators suggested a turnaround. The data showed that industrial activity, measured by the Index of Industrial Production (IIP), grew at a robust pace for the third straight month, at 7.5 per cent in January from 7.1 per cent in the previous month. The rebound, too, was broad-based — 16 of the 23 industries recorded growth, pushing up manufacturing growth by close to 9 per cent. What set apart the IIP numbers was the strong growth registered in consumer durables, at 8 per cent, compared