The data released by the government on Friday showed that the output from mines, utilities, and factories only grew by 0.5 percent year-on-year, which was much lower than expected and a significant drop from the 3.9 percent rise seen in June. Retail inflation also slightly decreased to 7.8 percent in August from the previous month, mainly due to slower increases in fuel and clothing prices. Despite the recent economic growth, Prime Minister Narendra Modi may face challenges in encouraging Indian consumers to spend more due to high inflation rates. The Reserve Bank of India is cautious about lowering interest rates due to inflationary risks, and it is expected that rates will remain unchanged in the upcoming review. Modi's election victory has led to optimism among investors, but structural changes are needed to sustain economic growth. In July, there was a 7.4 percent decrease in annual growth. Companies are hesitant to make new investments, with capital goods production seeing a 3.8 percent drop compared to the previous year. According to Rohini Malkani, an analyst at Citi, while the pro-business government has improved the investment climate and boosted confidence, more efforts are needed to return to a period of high growth and low inflation. Images show a man working in a boiler spare parts manufacturing workshop in Kolkata on June 11, 2014, and a laborer working in a steel factory on the outskirts of Jammu on January 2, 2014.