Production from mines, utilities, and factories grew by only 0.5 percent year-on-year, much lower than expected, according to government data released on Friday. This is a decrease from June's 3.9 percent growth. Retail inflation slightly decreased to 7.8 percent in August from 7.96 percent in the previous month, mainly due to slower price increases in fuel and clothing. The Reserve Bank of India (RBI) tracks retail inflation to determine lending rates. Despite the recent strong economic growth, high inflation may make it difficult for Prime Minister Narendra Modi to encourage consumer spending, which is a significant driver of the economy. The RBI is likely to keep interest rates unchanged during the upcoming review on September 30. Inflation is expected to decrease due to factors such as better rainfall, falling global crude prices, and moderating vegetable prices. However, concerns remain about potential interest rate hikes by the US Federal Reserve, which could lead to capital outflows and impact India's economy. Modi's government needs to address issues such as public finances, land acquisition laws, tax regulations, and labor rules to sustain economic growth and investor confidence. In July, there was a 7.4 percent annual decrease in investments, with firms being hesitant to make new investments. Capital goods production also dropped by 3.8 percent compared to the previous year. Despite the pro-business government's efforts to improve the investment climate and boost confidence, analyst Rohini Malkani from Citi believes more action is needed to return to a period of high growth and low inflation. Images show a man working in a boiler spare parts manufacturing workshop near Kolkata in June 2014, and a labourer working in a steel factory on the outskirts of Jammu in January 2014.