The core sector output in India reached a six-month low of 7.8% in November, compared to 12% in October, due to a delayed festival season and a high base effect. The core sector growth averaged 9.9% in the two months, indicating continued infrastructure momentum in the third quarter. The Index of Eight Core Industries measures the output of key infrastructure industries, including coal, natural gas, petroleum refining, crude, electricity, cement, and steel.
Indian economy is likely to log 6.3% growth in FY24 and FY25 on the back of macroeconomic and financial stability, International Monetary Funds Executive Board said Tuesday. The multilateral body expects investment to rise to 31.9% of GDP by FY25 and savings to rise to 30%.
What caused the market to worry was a sharp upward revision in RBIs forecast for Consumer Price Index-based inflation for this financial year – a step which in another day and age would normally be a precursor to tightening of monetary policy.