An index on India’s economic activity based on assorted high-frequency indicators (HFIs) decelerated sharply to a 27-month low of 4.5% in January from 5.4% in December 2024.
As per the Motilal Oswal Financial Services (MOFS), the fall in its economic activity index – gross value added (EAI-GVA) was primarily due to “low growth” in the services sector.
Conversely, growth in the agriculture and industrial sectors remained “robust.” The EAI-GVA is an index which tracks overall output in the economy and is termed useful for analysing real-time data.
The HFIs tracked portray a mixed picture for economic activity in February, MOFSL said, and added that it expects India’s real GVA growth to be in the range of 6-6.2% in Q4FY25, much lower than the official forecast of 6.8%.