Missing the target

• Industrial production in India slowed to a six-month low in February, down from 5.2% in January and almost halved from last February’s 5.6%.

• Mining saw the steepest decline to 1.6%, while manufacturing almost halved to 2.9%.

• A steep decline in consumer durables output and a production contraction of consumer non-durables indicate a marked decline in overall consumption demand.

• Despite a sharp dip in retail inflation, the government’s wish for a Maha Kumbh-led spike in consumption has not materialized, leading to the likelihood of the Centre’s 6.5% GDP growth target for the 2025 fiscal being missed.

• Despite the liquidity squeeze in India’s banking system by ₹1.7 trillion, capital goods output accelerated to 8.2% from 1.7% last year, indicating robust investment demand.

• Despite the possibility of its growth target for the last fiscal being missed, India remains the fastest growing economy.