In a massive jolt to the markets and economic confidence, Industrial Production has contracted for the first time since 2008. IIP figures have contracted by 3.5 percent in March vs. a month-on-month 4.1 percent growth in February. That's bad news for the government. GDP growth is already down below 7%. Although inflation has moderated, it still remains stubborn. And now prospects for 2012 are looking grim. Poor industrial production will fuel supply side inflation, impact India's exports, and potentially even slow down job growth. All eyes now on the government and the RBI on what urgent action will be taken.

For more log on to: http://alpha.newsx.com/