Missing the target, Pg 6

• Industrial production slowed to 2.9% in February, from 5.2% in January and 5.6% in Feb 2024.

• Output decline across sectors: - Mining: dropped to 1.6% - Manufacturing: fell to 2.9% - Consumer Durables: down 3.8% - Non-Durables: fell 2.1%

• February IIP reflects a 14-month low in the Manufacturing PMI (56.3).

• Despite retail inflation falling to 3.61% (food inflation at 3.75%), consumer demand remains weak.

• Government's push for a Maha Kumbh-driven consumption spike likely missed target.

• Within IIP, 77% weight comes from manufacturing: - Motor vehicles: 8.9% growth - Non-metallic minerals: 8% - Basic metals: 5.8% - Capital goods output: surged to 8.2% (up from 1.7%)

• RBI injected ?2.18 trillion using dollar swap to stabilise liquidity.

• ?1.7 trillion flight from Indian banking due to global volatility.

• Centre maintains optimism for 2025 growth, despite missing 6.5% GDP target.

• Indicates subdued consumer sentiment and external uncertainty.

• Manufacturing holds promise but needs sustained demand and investment.

• Reforms needed to boost consumer confidence, diversify exports, and stabilize global exposure.

• Domestic demand revival through infrastructure and welfare investment remains key.

Mains Mock Question:

"How does slowing industrial production reflect on Indias economic resilience? Discuss with reference to recent IIP and PMI data."