Economists fear India’s recovery may be plateauing

India’s industrial growth remained tepid at 3.2% in the peak festive month of October, weighed down by the base effect and weak production of consumer durables and capital goods, sparking concern that the economic recovery may be plateauing.

Economists called for more measures from the government to support the revival, pointing to below-expectation growth in October and signs of moderation in some of the high-frequency indicators in November. Industrial production had grown 3.3% in September and 4.5% in October last year.

The infrastructure sector provided the silver lining with 5.3% growth on a high base of 10.9% rise in output in the same month last year. Overall, the index of industrial production (IIP) was 7.8% higher than the pre-pandemic level of October 2019.

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