The Indian economy has held up well in the face of geopolitical unrest throughout the world, but the outlook has softened as a result of some high-frequency indicators moderating. Bank credit to the services sector and credit growth for personal loans have slowed. In July 2024, there was a slight decrease in the manufacturing and services PMI (Purchasing Managers’ Index), but the expansionary momentum persisted.
However, by June 2024, the rise in the core industry IIP and the overall Index of Industrial Production (IIP) slowed.
In July 2024, wholesale price inflation also decreased, largely as a result of a slowdown in food inflation, as reported by the Consumer Price Index (CPI). Additionally, it stated that in July 2024, the services trade surplus grew sequentially while the merchandise trade deficit deepened.