India's economy received a double boost when the retail inflation cooled down along with industrial production. This has led to an upswing in the economic momentum of the country.

Consumer Price Index (CPI) - based inflation released the rates for September to 5.02%. Cooling inflation and high pick-up factory output especially have brought good news for the policymakers who were worried about economic stagnation and slump in exports.

Now the inflation rate has moderated meeting the RBI's target range of 4-6%.

According to the data released by the Ministry of Statistics and Programme Implementation (MoSPI) which also revealed that food prices have also gone considerably down. While pressure still remains in the case of cereals, pulses, milk products, and spices.

Chhatisgarh, Rajasthan, and Karnataka have recorded a speedy downfall in inflation rates. Notingly, inflation often plays a key role in voting patterns.

The rise in industrial base implies the growth in manufacturing, infrastructure, and capital goods segments. Industrial production indicates the health of the domestic manufacturing sector. The latest data showed that manufacturing sector output increased by 9.3% in August.

'Looking ahead, a shift in the festive calendar may provide an optimum environment for GDP growth in the country.'

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Reference:

• livemint.com
• m.economictimes.com