India's LEI rises 0.3% in Dec, growth slows in second half of 2024

Meanwhile, the Conference Board Coincident Economic Index (CEI) for India dropped by 5.1 per cent in December to 148.5 (2016=100), reversing a 2.8 per cent gain in November. Over the past six months ending December 2024, the CEI declined by 0.3 per cent, a stark contrast to the robust 4.1 per cent growth recorded in the previous six-month period, The Conference Board, a US-based non-profit business and research organisation, said in a press release.

“The LEI for India rose in December. The increase in the headline Index came from 6 of its 8 components, while industrial production remained unchanged, and the real effective exchange rate contributed negatively. The strongest positive contribution came from merchandise exports which have been very volatile in recent months and pulled the Index down in November,” said Ian Hu, economic research associate, at The Conference Board.

“While the index’s semi-annual growth rate ticked up, both the six-month and annual changes are muted relative to its aggressive growth rates seen earlier in 2024. That may suggest potential hurdles to economic growth ahead into 2025. All-in-all, the Conference Board currently estimates that India’s real GDP grew by 6.4 per cent in 2024 and forecasts a slight softening to 6.0 per cent in 2025,” added Hu.

ALCHEMPro News Desk (SG)