India’s Manufacturing Purchasing Managers’ Index (PMI) for July 2014 is at the highest since Feb 2013, at 53.0, higher than the 51.5 in June.
Remember, what’s more than 50 indicates expansion, and less than 50 is contraction.
But this comes with a caveat.
A quick word of caution, however. The speed of the recovery has also lifted price pressures, with input prices rising steeply. This means that the RBI may not cheer as loudly as the rest of us."
You might find that with veggie prices going up too, we might see RBI wait for another two months before it decides to cut rates.