Reviving Momentum

India's economy stands at a critical juncture, shaped by evolving trends in consumer behaviour, investment patterns, and structural wage growth.

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Recent data underscores a complex mix of recovery and stagnation, pointing to significant headwinds that demand immediate attention. One of the most striking observations is the decline in the issuance of e-way bills, a reliable indicator of goods movement. The drop, particularly after the festive season, highlights a cooling in inventory replenishment and subdued trade activity. This trend mirrors broader concerns about consumption patterns, as rising inflation continues to erode purchasing power, leaving many households cautious about discretionary spending. The mutual fund industry also reflects these shifting dynamics. A slowdown in systematic investment plan (SIP) account additions and reduced new fund offerings suggest waning investor enthusiasm. While SIP inflows remain steady, overall equity fund inflows have seen a sharp decline, particularly in thematic and sectoral funds. This hesitation points to a growing preference for safe havens over high-risk investments amid economic uncertainty. The aut