New Delhi, April 14 -- India's domestic demand is showing signs of recovery, supported by several positive developments, according to a recent report by Crisil.

The report highlighted that healthy rabi output and easing inflation in the fourth quarter of fiscal 2025 are likely to boost consumption demand further.

It said "improved growth in capital, infrastructure and construction goods' output in the second half points at a gradual pick-up in construction /capital expenditure activity in the latter part of the fiscal. Finally, other high-frequency indicators show growth prospects improving in the fourth quarter".

One of the key contributors to the improving demand is the better performance of the Index of Industrial Production (IIP) f...