The Reserve Bank of India (RBI) will have to balance high inflation and slowing growth, the chief economic adviser to the finance ministry, Kaushik Basu, said on Monday after a sharp drop in industrial output growth. Growth in industrial output in July slumped to its lowest in nearly two years as high interest rates cooled Asia's third largest economy and put pressure on the central bank to pause its monetary tightening despite stubbornly high inflation. Industrial output rose just 3.3 percent in July, dragged down by a huge fall in capital goods production.
Reuters
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