India’s economic prospects for FY24 remain promising as economic activity maintains momentum. High-frequency indicators suggest that the second quarter of FY24 also shows positive signs. While there was a monsoon deficit in August, it was partially addressed in September, a positive development. The prices of specific food items that contributed to the inflation rate exceeding 7% in July are declining.
The private sector is in good shape, as indicated by data on advance tax payments for the second
quarter, showing that they are actively investing. Although there is a concern about the recent increase in oil prices, it is not yet causing alarm. In summary, the baseline projection for India’s economic growth in FY24 is 6.5% at 2011-12 prices.