While indicators of urban demand are growing at a sharp pace, rural consumption is in slow lane. However, manufacturing, mining and construction have all seen double-digit growth.
Indian govt's status paper presents a consolidated picture of country's debt position & emphasises the need to improve liquidity in the debt market by diversifying the investor base.
In Rajasthan & Telangana, inflation remains above 6%, while Chhattisgarh & MP see relief. Despite variations, political parties in all states assuring voters of subsidies, cash transfers.
Capital expenditure of 23 states grew by 52% in April-September 2023 over same period last yr, but discontinuation of GST compensation, tapering of grants could weigh down some states.
Urban consumers are more optimistic about current economic conditions, while those in rural India are more so about expectations of 1-yr ahead income, economic & business environment.
Rising oil prices and muted second quarter financial performance of key IT sector companies are other sources of potential volatility for Indian markets.
Index of Industrial Production data shows production in several sectors lower than 12 yrs ago. This may be true for some sectors, but also implies data collection process needs an update.
Conflict in the Middle East could upset assumptions & forecasts and, if it escalates, disrupt the oil markets. For India, it could raise worries on inflation, put pressure on the rupee.
It will attract more foreign funds and support diversification of investor base. Continued focus on macro-stability and fiscal prudence will be crucial to navigate associated challenges.
Data for 2022-23 shows households’ reliance on borrowings has increased not only to finance consumption, but also to purchase or construct property. Vehicle loans also saw an increase.
Peter Manuel's ‘Cassette Culture’ showed the booming Bhakti music during the '80s and '90s when Anoop Jalota, Gulshan Kumar achieved success by singing the sanitised Bhajans.
Economists say there are weaknesses in India’s GDP data. But statisticians claim the accusations are based on flawed understanding, saying while GDP has problems, the economists are looking in the wrong places.
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