Industrial Growth in July

The last July was for Indian industrial growth. It was up to 7.1% however it is lower than last year because in the last year it was about 8.3%. The growth is a breath for Indian government because inflation was tension for the government.

About its growth Hindustan Times writes, “While the manufacturing, which contributes about 80 per cent to IIP, grew by 7.5 per cent in July, compared with 8.8 per cent a year ago, electricity generation was up by 4.5 per cent, against 7.5 per cent.” Hindustan Times is an online and off line daily news paper. Further it writes, “As such, industrial growth turned out to be 5.7 per cent in the first four months of this fiscal, against 9.7 per cent a year ago.”

This analysis can be accurate but what is the cause of industrial growth however inflation was high for the Indian state. It is recent update for last July. In my analysis it is the cause of Bihar flood and nothing else.

Before it there was no scene to invest and growth. All the economy was in inflation and Sensex was down. There was no need of production but now its need has developed because Bihar flood has destroy about 5 lack people home and economy.

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Car Market

In the car market all the big companies are ready to launch their brand after TATA's Nano. Economy is slowdown and car market is also bearish but all the company creating market for car, why? I don't think the economy will cover its inflations after a year but what about car industries.

TATA, Hayndai, Bajaj, Honda, or BMW now all are targeting for Indian market to invest. They are thinking India is in growing market and here small car has more demand but they don't think that after inflations and economical problem what customer are thinking.

I think all the market are in slow down along with car market. A news announced that rather than new car used car on more sell. “In this fiscal so far, we have sold almost 44,000 used cars at a growth of 31 per cent,” said Ravi Bhatia who is the General Manager of Maruti Suzuki India Ltd.

According to review about 78% people are using 1st time buying car while 1.15% is increasement in the used car and expecting it will be about 2.6% by the 2010.

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What is statement regarding the inflation

In the business market and in economy both have inflation. Money inflation of India is in highest position. Government has not idea what have to do because they can’t do anything if they have.

I have already mentioned about government policy and its step to stop the inflation all is useless. Governments don’t want to cut capitalist profit because the government is for capitalists.

Now, to increase six pay scale of government employee it thinks that all the inflation will be solve. They don’t think how many people is government employee. Even they don’t think that how much they have given their incremental.

If government doesn’t stop capitalist profit they can’t stop inflation. In spite of it will be temporary solutions.

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