India’s Economic Data Surprises with Lower Inflation, Strong Growth

India’s latest economic data has delivered positive surprises. The Consumer Price Index (CPI) for February eased to 3.61% from 4.31% in January, beating the expected 3.98%—a sign that inflationary pressures are easing faster than anticipated. This drop reflects improved price stability, which could influence future monetary policy decisions.

Meanwhile, industrial production in January showed impressive strength, growing by 5.0% compared to 3.2% in December, well above the estimated 3.5%. This signals a rebound in economic activity and stronger output. Cumulative industrial production for the financial year up to January improved to 4.2% from 4.0%, indicating consistent growth momentum.

Manufacturing output in January also saw a remarkable rise, increasing by 5.5% from 3.0% in the previous month, highlighting a significant acceleration in the manufacturing sector. These positive trends suggest that India’s economy is gaining strength, with easing inflation and improving production laying the foundation for sustained growth.