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Factory output contracts by 0.6% in December, misses estimates

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India's index of industrial production (IIP) contracted by 0.6 per cent in December 2012, much lower than analyst expectations of a 1.2 per cent growth. According to Shubhada Rao, chief economist at YES bank, the December numbers seem worse sequentially. IIP contracted 0.1 per cent in November after rising 8.2 per cent in October.

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