The performance of high-frequency indicators for July 2023 continued to reflect mixed trends. Despite the continuing worldwide challenges of inflation and supply chain disruptions, overall business sentiment in India remained optimistic. On the positive side, domestic demand remained resilient despite the continuing global challenges: manufacturing and service activities peaked with fresh orders, industrial output grew (albeit at a slower pace), the unemployment rate dipped, tax collections rose, and public capital expenditures (i.e., investments) increased. On the other hand, retail inflation crossed the RBI-prescribed ceiling, the external sector remained gloomy with falling exports and imports, and the Indian rupee (INR) further weakened against the US dollar.
US-India Strategic Partnership Forum