world-economy

India's Economic Growth Loses Momentum Amid Cost Pressures

India's economic expansion decelerated in June as businesses faced rising input costs and weakening demand, according to HSBC survey data. The slowdown reflects challenges across the region, as neighboring economies tighten fiscal spending and experience softer domestic consumption. Agricultural equipment sales have weakened, signaling potential headwinds for transportation sectors supporting farm machinery movement. Despite energy-driven inflationary pressures, India's central bank indicated that price increases have not fully transmitted into broader consumer costs, keeping inflation contained relative to policy targets. Manufacturing and services sectors report constrained order volumes and mounting cost pressures.