India’s economy remained strong in the early months of 2026, but recent indicators suggest a gradual slowdown due to external pressures, particularly the West Asia crisis and rising crude oil prices. According to the Finance Ministry’s March Monthly Economic Review, economic activity stayed robust through February, supported by strong demand, infrastructure growth, and policy backing. High-frequency indicators showed continued expansion in manufacturing and services, while consumption indicators such as vehicle sales and digital payments remained strong. Industrial output also reflected resilience, with increased steel and cement production indicating sustained infrastructure and construction activity driven by public investment.
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