Losing momentum: On slowing consumption demand
Several economic indicators released over the past week are bad news for the Finance Ministry and Reserve Bank of India’s hopes of a growth rebound in the second half of 2024-25 — at least for the October-December quarter. While GDP growth slipping to 5.4% in the second quarter was termed a transient blip, policymakers have acknowledged slowing consumption demand led by restrained spending trends in urban India. They have also exuded optimism about a festive boost from cities along with a resilient rural demand outlook lifting the momentum. The latest data points are also important as they are part of the final gauges for the Finance Ministry to assess before it finalises its economic blueprint for 2025-26 in the February 1 Union Budget. Bank credit growth has slowed for the fifth straight...