Growth in industrial production is down to 3.3% in July when expectation was for a growth of 6.2%. ET, August 13. However, experts are not perturbed. The figures have been affected by a fall of 15.2% in the production of capital goods such as power turbines and heavy machinery. Excluding this industrial production grew by better than expected 6.8%. Experts are very encouraged by massive increases in indirect tax collections. Excise rose 19.7%, customs duty by 13.4% and service tax collection by 57.3%. These rises, they reckon, indicate that the economy is growing and we should rejoice. But could the figures be connected? Indirect taxes increase the cost of goods and services and add to inflation which is around 10% and threatening to get out of hand. The RBI has raised interest rates more then 10 times, the last 2 times by 0.5%, without any effect on inflation. The combination of uncontrolled inflation and increasing rates have eroded the purchasing power of the people who are forced to cut purchases. The large fall in capital goods production reflects the lack of confidence that industrialists have in the future of the economy. Even as the real economy is slowing down there is no reduction in property prices. In fact property prices in non metro cities are rising by 15 - 20% reflecting the rise in black money but the government is in denial. The World Famous Economist has declared a flat owned by him in Vasant Kunj in Delhi as costing Rs 8.6 million while every broker said that the market rate of the flat is in excess of Rs 20 million. Unless black money is eliminated inflation cannot be controlled. Sadly no one has a clue. So so dumb.