Instead of the expected 6.5% — 4.8%: what new data from India showed
2 March 20:10
Industrial production in India rose 4.8% year-on-year in January. This is lower than the revised 8% growth in December, according to government data cited by Reuters, reports "Komersant Ukrainian".
Slower than expected
Economists surveyed by Reuters had forecast growth of 6.5%. Thus, the actual figures turned out to be weaker than market expectations.
The slowdown may signal a slowdown in the recovery of the manufacturing sector after a stronger finish to the previous year. At the same time, one month does not necessarily form a sustainable trend — analysts usually assess dynamics based on quarterly indicators.
Why it matters
Industry is one of the key drivers of the Indian economy, along with the service sector. Investors closely monitor manufacturing data as it influences expectations for economic growth, monetary policy, and corporate earnings.
The new figures were released amid government plans to step up privatization. Earlier, the authorities announced that by fiscal year 2030, they plan to raise about $19.7 billion through the sale of stakes in state-owned enterprises through initial public offerings.
India remains one of the world’s fastest-growing major economies
India remains one of the world’s fastest-growing major economies, but its growth rate may fluctuate depending on domestic demand, investment activity, and global economic conditions.
The 4.8% figure indicates continued growth, but a slowdown could intensify the debate over stimulating the industrial sector or revising economic forecasts for the year.
