Report Shows Slowdown in India's Key Economic Indicators

High-frequency indicators of the Indian economy have indicated signs of slowdown, as highlighted in a report by Nuvama.

- TBG NETWORK

Despite the Reserve Bank of India's (RBI) efforts to support growth through rate cuts and other liquidity measures, growth momentum across key sectors is showing signs of weakness.

The report pointed out that most of the economic indicators data that were in double digits a year ago have now slipped into single digits, similar to the levels seen before the COVID-19 pandemic. It stated, "India's high-frequency data are now slowing with most of them moving to single digits."

The report mentions that India's bank credit growth, which was 16 per cent a year ago, has now declined to 9 per cent as of June 2025. This sharp fall reflects reduced borrowing and weaker demand in the economy. Similarly, GST collections, which were growing at 11 per cent a year ago, have slowed to just 6.2 per cent in June 2025. This decline indicates a slowdown in consumption and business activity.