GDP

India's real GDP demonstrated robust expansion, recording a year-over-year growth of 8.4 percent in the fourth quarter of 2023, culminating in a full-year growth of 7.7 percent for the same year.

This surge in the equity markets was further propelled by a rally in global markets, contributing to the overall positive sentiment.

Economist Jahnavi Prabhakar stated in a report that for Q3FY24, the economy is expected to expand at a slower pace of 6.4 percent compared to 7.6 percent in Q2FY24, primarily due to muted growth in agriculture and industry. However, Prabhakar noted that the service sector is anticipated to contribute positively to overall growth.

According to the bulletin, the Indian economy continues to maintain the momentum achieved in the first half of the fiscal year 2023-24, as evidenced by various high-frequency indicators. Consumer confidence notably strengthened in January 2024, particularly buoyed by optimism surrounding the overall economic situation and employment conditions, as revealed by the latest household survey conducted by the RBI.

The report highlights that the Indian economy is expected to grow by 7.3 percent in the current financial year, marking the third consecutive year of GDP growth exceeding 7 percent. Notably, the Ministry of Statistics and Programme Implementation's first advance estimates for FY24 project growth above 7 percent, leading several global agencies to revise their growth forecasts for India upwards.

Crossing the 25% threshold is pivotal, as it empowers the Burmans to have a decisive say in key resolutions, requiring 75% shareholder approval. Notably, the Competition Commission of India (CCI) approval was obtained last week for this transaction.

Surpassing the Reserve Bank of India's (RBI) recent revision to 7%, this estimate signals positive economic momentum, particularly after a surprising 7.6% growth observed in the July-September quarter, driven by robust expansion in the manufacturing sector.

In the July-September quarter of the current financial year, India's GDP achieved a commendable 7.6% growth. Despite a slowdown in agriculture, the manufacturing sector's robust performance and substantial government expenditure on major infrastructure projects sustained this growth momentum.