Mumbai, Oct. 29 -- The slowdown in India's industrial output during the first half of the financial year 2025-26 (H1FY26) is expected to be offset by the Goods and Services Tax (GST) rationalisation, early arrival of the festive season, and lower inflation, according to a report by Bank of Baroda.

The report signals that these factors indicate growing strength in the domestic economy, even as uncertainty continues in the global environment.

It stated, "Industrial output registered slower growth at 3 per cent compared with 4.1 per cent in H1FY25.....The ongoing reforms exhibit resilience in the economy as these indicators are expected to boost the production and support the growth momentum in H2FY26."

The report also expects that the in...