K-shaped recovery

INDEX OF INDUSTRIAL PRODUCTION (IIP) TRENDS

India’s February 2026 IIP data reveals a K-shaped recovery. While government capex boosts manufacturing, lagging consumer demand signals structural gaps. Achieving Viksit Bharat 2047 requires shifting to employment-intensive growth, MSME support, and boosting household purchasing power to bridge this divide.

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ECONOMY GROWS FASTER THAN EXPECTED, BUT WARNINGS REMAIN

India’s GDP growth, driven by public capex and services, masks weak private consumption, rising inequality, and agrarian stagnation. Overreliance on state spending is unsustainable. Inclusive growth needs revived household demand, private investment, labor-intensive sectors, and stronger human capital.

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K-shaped recovery

INDEX OF INDUSTRIAL PRODUCTION (IIP) TRENDS

ECONOMY GROWS FASTER THAN EXPECTED, BUT WARNINGS REMAIN

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