A host of indicators point to the growth slowdown becoming more entrenched
As the Indian economy started slowing since last Diwali, car sales dipped, consumer goods companies reported lower volume growth and businesses found it harder to borrow money. As growth continues to weaken, a host of indictors are pointing to a much deeper malaise than initially believed. Diesel sales are down and with it truck sales; loan growth has fallen and wholesale price inflation, a key indicator of the pricing power of industry, now reads below 1 percent.
When might growth revive? Look for increased credit growth, rising imports and higher truck sales. Ghosh believes that is at least two quarters away and has penciled in 6.2 percent as his FY21 target.