India's Inflation Moderates To 7-Month Low, Industrial Growth Strengthens: SBI Ecowrap

New Delhi, Mar 17 (KNN) Consumer Price Index (CPI) inflation in India moderated to a 7-month low of 3.6 per cent in February 2025, primarily driven by a sharp decline in vegetable prices, according to the latest edition of SBI Ecowrap released on March 12. However, core inflation has crossed the 4 per cent mark for the first time in 14 months, reaching 4.08 per cent.

The report, published by the State Bank of India's Economic Research Department, highlights that industrial growth has shown positive momentum, with the Index of Industrial Production (IIP) expanding by 5.0 per cent in January 2025. This growth was primarily led by strong performances in the manufacturing and mining sectors.

A notable trend identified in the report is the persistent gap between rural and urban inflation rates, with rural areas continuing to experience higher inflation compared to urban centres. This disparity is largely influenced by food price trends across different regions of the country.

The SBI Ecowrap also points to a dramatic surge in imported inflation, which has risen from 1.3 per cent in June 2024 to 31.1 per cent in February 2025. This significant increase is attributed to rising prices of precious metals, oils, and fats in international markets.

Looking ahead, the Reserve Bank of India is expected to implement at least 75 basis points of rate cuts during 2025, with successive reductions anticipated in April and August, according to the report's projections.

Despite inflationary pressures, corporate performance remains robust, with revenue, EBITDA, and PAT growth of 6.2 per cent, 11 per cent, and 12 per cent, respectively, in the third quarter of fiscal year 2025. This strong performance indicates resilience in the business sector despite economic challenges.

The SBI Ecowrap serves as a comprehensive analysis of India's economic landscape, providing insights into various aspects including GDP growth, agricultural reforms, and the dynamics between formal and informal economies.

(KNN Bureau)