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Temporary respite: On the June 2026 data for the Index of Industrial Production

The Index of Industrial Production surprised with a 7.3% growth in June 2026, a 23-month high, despite West Asia crisis and monsoon deficiency. Manufacturing, consumer durables, and exports drove this resilience. Capital goods showed consistent double-digit growth, largely due to government capital creation. However, economists warn that monsoon deficiencies will hit rural demand, and West Asia volatility will impact oil prices, straining the economy's resilience. Temporary boosts from electricity and mining won't suffice. The government must consider radical measures and continue capital expenditure as uncertainties mount and current resilience faces prolonged strain.

The Hindu · The Hindu · Jul 30, 2026 at 7:47 PM

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