In comparison to the same period last year, the gross value added (GVA) increase for the April–June fiscal period will drop below 7% to 6.7%–6.8%. Given the hazy forecast for global growth and the decreasing rate of inflation, monetary policy can be eased.
Based on 41 lead indicators, growth forecasts for manufacturing enterprises indicated a slowdown in sales growth and a little increase in staffing costs. The future of the global economy is still unclear due to the ongoing geopolitical tensions, signs of a possible recession due to subpar labor market results in important economies, and volatility in the financial markets as a result of monetary policy divergence.
It noted that as of August 25, the cumulative rainfall was 5% above the long period average (LPA) as opposed to 7% below the LPA during the same period the previous year. This was good news for India as the South West monsoon began to strengthen in early July, ending the shortfall.