This Hindu editorial 14/08/2025, presents a contrasting economic picture for India, where a positive, multi-year low in retail inflation masks a worrying growth slowdown. While July's inflation of 1.55%, driven by a significant contraction in food prices, offers relief and is expected to continue due to a good monsoon, the piece argues there is no room for complacency. This positive development is overshadowed by clear signs of an economic downturn, with the editorial citing a raft of negative indicators including a 10-month low in industrial production, slowing GST revenues, contracting direct tax collections, and declining car sales and UPI transactions. The piece concludes that the official 6.5% growth forecast now appears optimistic, as the temporary dip in inflation is insufficient to solve the economy's deeper structural problems and persistent weak demand.
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