After growing by 4.1 per cent in the month of February 2012, the March Index of Industrial Production (IIP) has surprisingly contracted to negative 3.5 per cent.

The RBI has cut key interest rates by a good 50 basis points against a consensus estimate and expectations of around 25 basis points, putting economic growth ahead of other parameters. What has prompted it to do so? Vidrum Mehta provides some clues.