India’s Growth Moderates Amid Inflationary Pressures and Global Headwinds
Mumbai | BomBay Weekly
India’s economic growth showed signs of moderation in the latest quarter, reflecting the impact of persistent inflation, high interest rates, and slowing global demand, according to official data released by the Ministry of Statistics and Programme Implementation.
While domestic consumption remained relatively resilient, export growth weakened due to reduced demand from major international markets. Manufacturing output also recorded slower expansion, affected by rising input costs and cautious investment sentiment.
Economists note that global geopolitical tensions, including ongoing conflicts and trade disruptions, have added uncertainty to economic recovery. At the same time, elevated food and fuel prices continue to exert pressure on household spending.
The Reserve Bank of India has maintained a cautious monetary stance, prioritising inflation control while keeping an eye on growth. Analysts expect interest rates to remain steady in the near term, with any easing likely dependent on sustained inflation moderation.
Despite the slowdown, policymakers have reiterated confidence in India’s medium-term growth prospects, supported by infrastructure spending, digitalisation, and a strong services sector.
