Industrial production dipping into the negative and growth slowing down will play a major role in the Reserve Bank of India's decision on key interest rates and India Inc. hopes the central bank will not play spoil sport this time. The RBI will conduct the mid-quarter review of the monetary policy on Friday.

The central bank has hiked rates 13 times since early 2010 to tame inflation. That objective is closer to realisation, according to latest official figures. Food inflation has dipped to 4.35 percent for the week ended Dec 3, while headline inflation - though still above 9 percent - has shown some signs of decline. Industrial production, however, has taken a beating in the past four months. High interest rates have deterred investments and brought down the index of industrial production into negative terrain.

Overall gross domestic product growth too will not be as per earlier forecasts. With 6.9 percent GDP growth in the first quarter and 7.3 percent in the April-September period, growth this year will be below expectations. Latest government estimates peg it at 7.5 percent (+ or - 0.25 percent).