India’s economic performance picked up in September 2022, mainly reflecting growth in demand despite the continuing uncertain geo-political conditions. Consumer sentiment and the demand recovery have shown positive trends through the first six months of fiscal 2022-23, following a renewed festive season without COVID restrictions and a relatively narrower demand-supply gap with improved semiconductor supplies. Strong consumer demand is perhaps the most important engine of economic growth. However, downward movements were visible in industrial activity and the sustaining core consumer inflation remains the dampener for the economic performance.