Industrial production has been hit due to the Covid-19 pandemic since March last year when it had contracted 18.7%
The estimated loss to the exchequer will remain in consumers’ pockets
The Index of Industrial Production (IIP) also increased 11.9 percent in August as per the official data.
While RBI has to maintain the recovery in the economy, inflation itself could dampen demand and impact the growth process.
Inflation in the food basket slowed down to 3.11% in August 2021 from 3.96% in July 2021, according to the data released by the NSO.
IIP growth: Power generation rose 11.3%, and mining output also increased by 19.5% in July. In July 2020, the IIP had contracted 10.5%.
Today's data points vindicate the RBI's decision to calibrate the policy normalisation in a gradual fashion, say experts
Inflation in the food basket slowed down to 3.96% in July from 5.15% in the previous month
To reduce the dependence on imports, PM Modi announced the NMEO-OP initiative to make India self-sufficient in cooking oils, including palm oil.