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BUSINESS & TRADE AUGUST 29, 2025 | The Indian Eye 42

Indian Economy Shows Strong

Momentum as Core Sectors, Retail,

and Markets Signal Growth

Signs of broad-based strength are emerging in the Indian economy, with latest data on industrial production, retail
consumption, and stock market performance all pointing to sustained momentum despite global uncertainties.

OUR BUREAU
Mumbai / New Delhi

ndia’s economic outlook received a boost this
week as the Ministry of Commerce and Indus-
Itry reported a rise in the Index of Eight Core
Industries (ICI), fresh projections showed on-
line retail on an explosive growth path, and stock
markets closed higher on strong domestic inflows.
Together, these indicators underline resilience in
Asia’s third-largest economy at a time when global
headwinds remain a challenge.
CORE SECTOR GAINS

he ICI, which maps the performance of coal,
crude oil, natural gas, refinery products,
Tfertilizers, steel, cement and electricity, reg-
istered a 2 per cent growth in July 2025 over the
same period last year.
The uptick was powered by strong double-digit
growth in steel (12.8 per cent) and cement (11.7
per cent) production, underscoring robust demand
from infrastructure and construction activity. Fer-
tilizers and electricity also posted modest increases.
While output of coal, crude oil, natural gas
and refinery products contracted, analysts suggest
the momentum in steel and cement reflects India’s
infrastructure drive and housing push. Given that The Indian equity markets remain buoyant on the back of domestic liquidity and reforms (ANI file photo)
the eight industries together make up over 40 per
cent of the Index of Industrial Production (IIP),
Quick commerce, in particular, is surging at while steady inflows from domestic investors con-
the July numbers are seen as a positive signal for 70–80 per cent annual growth, making India the tinue to support valuations. IT and FMCG stocks
the broader economy.
fastest-growing quick commerce market globally, led the rally, though experts cautioned that exter-
DIGITAL CONSUMPTION RISES with adoption spreading even to mid-sized towns. nal risks — particularly U.S. tariffs and sanctions
Electronics, fashion, and groceries are expected to on Russian crude — could influence sentiment in
arallel to industrial activity, India’s con- lead category growth in the coming years, support- the months ahead.
sumer economy is witnessing a major trans- ed by the rise of India’s middle class, which is set Together, the data points reflect a broadening
Pformation. A new FICCI-Deloitte report to comprise 60 per cent of the population by 2047. economic recovery. The industrial sector is show-
projects online retail to rise from USD 75 billion STOCK MARKETS JUMP ing resilience despite energy-related contractions,
in 2024 to USD 260 billion by 2030, doubling its the digital economy is expanding at a record pace,
share in overall retail from 7 per cent to 14 per nvestor sentiment echoed the positive mo- and equity markets remain buoyant on the back of
cent. mentum as Sensex closed 213 points higher domestic liquidity and reforms.
Fuelled by Gen Z’s spending power, rapid Iat 81,857.84 and Nifty rose 69.90 points to Economists say that sustaining this momen-
smartphone adoption, and deeper internet pen- 25,050.55 on Wednesday. Both benchmarks have tum will depend on continued infrastructure
etration, the shift is altering India’s consumption advanced more than 2 per cent over the past week, spending, policy stability, and global trade condi-
map. Tier II and III cities now account for more buoyed by optimism around proposed GST re- tions. For now, however, the numbers indicate that
than 60 per cent of e-commerce transactions, high- forms and stable global cues. India is positioned to stay on a high-growth trajec-
lighting how digital inclusion is broadening the According to analysts, Nifty’s decisive break tory, balancing traditional industrial strength with
consumer base. above the 25,000 mark has bolstered confidence, digital consumption and capital market depth.

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