FinMin Notes Softening Urban Demand and Factory Output

• The Finance Ministry acknowledges softening consumer sentiments and faltering demand, especially in urban India.
• Moderation in industrial momentum in recent months.
• The Ministry maintains that the economy will grow between 6.5% and 7% through 2024-25.
• Evidence of a slowdown in urban demand is reflected in the performance of various indicators during the first half of the financial year.
• The trends may be largely explained by softening consumer sentiments, limited footfall due to above-normal rainfall, and seasonal periods.
• The Ministry is hopeful of rural demand picking up further.