Amid the confidence shown by the government, RBI , independent analysts and global rating agencies on India’s economy despite external headwinds, some high-frequency macroeconomic indicators for the first half of the current fiscal year serve as a reminder of pain points, reports Saikat Neogi.

Macroeconomic Headwinds

While inflation has cooled, GST reforms are apparently triggering consumption and credit flows are expected to pick up, industrial production, exports and new project announcements in H1FY26 presented a dismal picture. After the jump in H1FY22 caused mainly by the shrunken base of the pandemic period, the growth in index of industrial production has been steadily declining over the first halves of all subsequent financial years.

GST and GDP

GST collections are holdin

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