New Delhi, June 14 -- India's soft industrial momentum, a widening trade gap, and early signs of business caution warrant close tracking as H2 2025 unfolds, according to a report by LLama Research.

While the broader economic outlook remains positive, the report added that there are signs that some areas of the economy may need close attention going forward.

The report said "India continues to run a "Goldilocks" macro script -- strong growth and moderating inflation -- with solid buffers in place. However, soft industrial momentum, a widening trade gap, and early signs of business caution warrant close tracking as H2 2025 unfolds".

India is currently in a high-growth, low-inflation sweet spot. The growth is being led largely by the serv...