Archive · 4 Nov 2025
India's Economic Momentum Slows in September Amidst Weak Demand
Imagine India's economy is like a car.
In September, the car started to slow down a little bit.
Some of the parts that show how well the car is doing, like the ones that track how much people are buying things and how much we are selling to other countries, are not working as well as they usually do.
This means more parts are showing a 'warning' sign.
However, some parts are still doing great, especially the ones related to making life easier for people, like keeping prices low.
The car is still moving forward, but not as fast as it was before, and there are more yellow and red lights showing up on the dashboard.
India's economic momentum weakened in September, with more indicators falling below their five-year average trend.
Eight out of sixteen high-frequency indicators tracked by Mint were in the 'red' zone, indicating performance below the five-year average.
Consumer demand showed weakness in areas like broadband subscribers and air travel, although tractor sales surged due to good monsoon.
The external sector faced challenges with declining labour-intensive exports and a widening trade deficit.
Despite some economic slowdown, the ease of living sector remained strong due to low inflation.
- Who
- India's economy
- What
- Economic momentum softened, with more indicators turning negative compared to the previous month.
- When
- September
- Where
- India
- Why
- Sluggish external sector and weak consumer demand, though the ease of living sector remained strong due to low inflation.
- Index Used
- Mint's macro tracker (based on 16 high-frequency indicators)
- Month of Data
- September
- Indicators in the Red (below 5-year average)
- 8
- Indicators in the Green (above 5-year average)
- 7
- Indicators Moved from Amber to Red
- Core sector growth, import cover, labour-intensive sector exports
- Consumer Segment Indicators
- Broadband subscriber base, domestic air travel, passenger vehicle sales, tractor sales
- External Sector Indicators
- Labour-intensive exports, trade deficit, rupee vs USD, foreign exchange reserves