Despite slowdown fears, India’s economy’s animal spirit is moving to the right
In December, India’s economy showed signs of improvement as business conditions picked up, recovering from a slowdown the previous month.
This report is being released before India’s budget is presented on February 1st, where the Finance Minister is expected to emphasize India’s ability to achieve strong growth in the upcoming fiscal year.
Despite the positive signs, India still has some challenges ahead. Exports have decreased in two out of the past three months, causing difficulties for companies trying to acquire new business from international markets.
According to Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, “While some may question the resilience of the Indian manufacturing industry in 2023.
The market sentiment showed some positive signs, as electricity consumption, which is often used as an indicator of demand in the industrial and manufacturing sectors.