Leading experts weigh in on growing India’s economy in 2024–25
A new report released by Emkay brokerage firm on Tuesday highlights a positive growth outlook for India, particularly in the industrials and capital expenditure (capex) sectors. The report indicates that government spending continues to be a significant driver of growth, with strong spending patterns observed across various sectors.
The report reveals that most companies are optimistic about long-term growth, seeing this period as a sustained spell of economic expansion with minimal signs of cyclical pressure. Industrial firms, in particular, are benefiting from a stable operating environment, with no substantial changes in government spending, order book growth, or demand momentum.
Additionally, costs remain under control, and recent declines in commodity prices could provide further support. The report notes that companies have not revised their capex plans recently and are experiencing an upward momentum in investments.
Overall, the findings suggest that the medium-term demand outlook for India remains robust, with continued strong performance anticipated across industrial sectors.
There is a slight softness in asset quality that could drive an upward normalization of credit costs.
Rajeev Chaba, CEO Emeritus at JSW MG Motor, said that the thrust of policymakers is to enable the local supply chain, to help meet the objectives of multiple stakeholders.
The objectives are to reduce the national crude import bill and dependence on China for EV supplies, higher localization to bring down costs for customers, and support local manufacturers, he mentioned.
According to Ashish Bharat Ram, Chairman, SRF, India’s chemical industry has given massive total shareholder returns compared to European innovators or Chinese producers, owing to its lower base and shift of manufacturing away as part of the China + strategy of the companies.
The government’s fiscal deficit has declined to 8.1 percent of the full-year estimate in the first quarter of the current financial year, compared with 25.3 percent during the same period in the previous year. The fiscal deficit stood at Rs 1.36 lakh crore at the end of June.
Overall, the government has spent 20 percent of its total expenditure of Rs.48.2 lakh crore budgeted for the current fiscal. The capex spending has been kept unchanged at Rs.11.11 lakh crore to spur growth.
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Pappu is now employed. That itself is indicator of Indias growth & very less % of unemployed youth