India's economic activity growth slows to 11.4% in July

India's economic activity growth moderated to 11.4% in July, down from 12.1% in the previous month, signalling a gradual normalisation in the pace of expansion across sectors.

The deceleration was driven by weakness in mining activity, electricity generation, and e-way bill transactions, which serve as a proxy for goods movement and commerce. Domestic air traffic also showed softer growth during the period, reflecting reduced economic momentum in some segments.

On the positive side, cement and coal output strengthened, providing some offset to the overall slowdown. The labour market also showed improvement, with unemployment declining during the month, suggesting continued job creation across the economy.

The moderation in growth comes amid seasonal factors and normalisation from elevated activity levels seen in earlier months. The mixed signals from different sectors underscore the uneven nature of economic recovery, with traditional industries like cement and coal performing well while services and logistics activity faced headwinds.