El Niño and weak domestic GST collections signal approaching headwinds for rural demand

In this episode of State of the Economy podcast, Shishir Sinha speaks with economist Rumki Mazumdar of Deloitte on India’s key high-frequency indicators. They discuss fiscal trends, GST collections, industrial output, inflation, and growth outlook amid global uncertainty and energy price volatility. The conversation highlights strong government support to the economy alongside fiscal discipline. While GST shows weaker domestic demand, imports remain strong. Industrial production is supported by sectors like machinery and pharmaceuticals, though some segments face pressure. They also discuss risks from El Niño, rising food and energy prices, and their impact on rural demand and inflation. Despite challenges, India’s growth remains resilient, supported by consumption and investment.