“A good beginning is a harbinger of positive outcomes… FY24 for the Indian economy opened on the back of strong activity witnessed in the last quarter of the previous fiscal. The first month of the new fiscal has sustained the growth momentum of the previous quarter,” the report stated, noting that indicators such as air passenger traffic had moved beyond pre-pandemic levels and goods and service tax collections remained robust.
“Buoyed by sustainable growth in activity, increasing capacity utilisation to investment triggering 75 per cent, the corporates have started investing in new capacity. During Q4FY23, the Centre for Monitoring Indian Economy reports the completion of projects worth Rs 60,000 crore and the announcement of new projects valued at Rs 10.9 trillion,” the report stated.
“Going forward, healthy prospects for the kharif season, higher minimum support prices (MSP) for crops, and increased budgetary spending by the government are likely to enhance farmers’ income and boost the rural economy.
Wholesale price index- (WPI-) based inflation entered deflationary territory in April, falling to 34-month low at -0.92 per cent from 1.34 per cent in March, due to a higher base effect and continuing contraction in prices of manufactured products.
Sticky core inflation has moderated significantly to almost a three-year low in April, signalling a pass-through of lower input costs by producers, the MER stated.
The report said that some risks to growth and inflation remain.
“There are downside risks to growth and upside risks to inflation, partly channelled through the external sector and partly originating from weather uncertainties. Yet, a strong point going India’s way is the strength of its domestic demand. Consumption has shown steady and broad-based growth, while investment in capacity creation and real estate is finding traction,” it said.
“A good beginning is a harbinger of positive outcomes… FY24 for the Indian economy opened on the back of strong activity witnessed in the last quarter of the previous fiscal. The first month of the new fiscal has sustained the growth momentum of the previous quarter,” the report stated, noting that indicators such as air passenger traffic had moved beyond pre-pandemic levels and goods and service tax collections remained robust.
“Buoyed by sustainable growth in activity, increasing capacity utilisation to investment triggering 75 per cent, the corporates have started investing in new capacity. During Q4FY23, the Centre for Monitoring Indian Economy reports the completion of projects worth Rs 60,000 crore and the announcement of new projects valued at Rs 10.9 trillion,” the report stated.
“Going forward, healthy prospects for the kharif season, higher minimum support prices (MSP) for crops, and increased budgetary spending by the government are likely to enhance farmers’ income and boost the rural economy.
Wholesale price index- (WPI-) based inflation entered deflationary territory in April, falling to 34-month low at -0.92 per cent from 1.34 per cent in March, due to a higher base effect and continuing contraction in prices of manufactured products.
Sticky core inflation has moderated significantly to almost a three-year low in April, signalling a pass-through of lower input costs by producers, the MER stated.
The report said that some risks to growth and inflation remain.
“There are downside risks to growth and upside risks to inflation, partly channelled through the external sector and partly originating from weather uncertainties. Yet, a strong point going India’s way is the strength of its domestic demand. Consumption has shown steady and broad-based growth, while investment in capacity creation and real estate is finding traction,” it said.