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As animal spirits sag, FM's announcements may fall short of spurring growth

As India's investment and consumption activity worsened in July, the measures announced by the FM to revive the economy will boost market sentiment but are unlikely to propel growth

Finance Minister Nirmala Sitharaman
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Finance Minister Nirmala Sitharaman

Anirban Nag | Bloomberg
Weakness in India’s investment and consumption activity worsened in July, with economic growth showing little signs of recovery from a five-year low.

A gauge measuring overall activity moved one notch toward weaker territory, as six of the eight high-frequency indicators compiled by Bloomberg fell from the previous month. Car sales slumped the most in almost two decades and latest data showed infrastructure sector output grew at the slowest pace in more than four years.

The weakening came about a month before Finance Minister Nirmala Sitharaman announced a slew of steps to revive Asia’s third-largest economy. While the measures boosted market

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First Published: Aug 28 2019 | 7:55 AM IST

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