The Indian economy received a much-needed breather as recent data revealed an easing of retail inflation and an encouraging rise in factory output. Retail inflation, measured by the Consumer Price Index (CPI), softened to 6.8% in November, down from 7.4% in October, driven by a decline in food and fuel prices. This moderation comes as a respite for consumers and policymakers, signaling a gradual stabilization in price pressures
Source:- bbc news
On the industrial front, factory output, indicated by the Index of Industrial Production (IIP), expanded by 4.3% in October, rebounding from a contraction in the previous month. This growth was fueled by robust performances in the manufacturing and electricity sectors, alongside improvements in mining activities. Key industries such as automobiles, electronics, and pharmaceuticals exhibited strong recovery, reflecting growing consumer and export demand.
Source:- news 18
The dual positive indicators are a welcome relief for an economy grappling with global uncertainties and domestic challenges. Lower inflation enhances purchasing power and could stimulate consumption, a critical driver for India’s growth. Simultaneously, the uptick in industrial activity suggests a revival of business confidence and investment, potentially contributing to job creation and economic stability.
Analysts believe these developments could provide the Reserve Bank of India (RBI) more room to balance its monetary policy stance. While the central bank has prioritized inflation control through a series of rate hikes, the latest data may allow a pause or slower pace of tightening, supporting economic growth.
However, challenges remain, including external risks such as volatile crude oil prices and global recessionary trends. Policymakers must remain vigilant to ensure these positive trends translate into sustained economic recovery, bolstered by structural reforms and targeted fiscal measures.
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