For India, IMF has maintained its growth estimate at 7% for 2024-25, followed by 6.5 per cent next year. Slowdown from 8.2% growth in 2023 is attributed to exhaustion of pent-up demand.
Investors are moving money to financials after their recent underperformance and in anticipation of no negative surprises as focus shifts to earnings, analysts told Reuters.
Lower middle-class and rural consumers are cutting discretionary spending, choosing cheaper local products and buying less to stretch the rupee as much as they can.
Latest Annual Survey of Industries 2022-23 shows large segments of India’s manufacturing workforce are employed in low-productivity work, value added per worker has contracted.
Israel-Iran conflict, along with outlook on inflation & growth in an uncertain global environment will be key areas of concerns for new members of the reconstituted committee.
According to SBI research, inflation is projected to remain below or close to 5% in coming months. For the full FY25, it is likely to average to 4.6-4.7%.
I don’t believe that the US-India relationship has deteriorated beyond repair. There are ways of handling Trump, even if the Pakistanis have outplayed us this year.
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