India’s Economic Success: A Bright Outlook for 2024
Newzdaddy Business Updates
India’s Economic Growth Shines Globally
India’s economic growth continues to impress across various sectors. The World Bank’s latest report hails India as one of the fastest-growing major economies, projecting a robust growth rate of 7.2% for FY22/23. This places us second-highest among G20 nations and nearly double the average for emerging market economies.
Vision for the Future
With a vision to become a $25 trillion economy in the next 25 years, India is making substantial efforts that are yielding positive results. The nation’s commitment is underpinned by strong domestic demand, increased public infrastructure investment, and a fortified financial sector.
Revised Growth Projections
The World Bank and IMF forecast India’s GDP growth for FY23/24 at 6.3%. Factoring in the latest GDP data and a more favorable global growth profile, we have revised our FY24E real GDP growth to 6.8%, maintaining FY25E at 6.3%.
Global Economic Landscape
Despite global challenges such as the Russia-Ukraine conflict, the Israel-Hamas war, peak global inflation, and consumption slowdown, global growth remains resilient. Nifty and BSE Sensex soared in CY23, with the Nifty Midcap and Smallcap Indices outperforming. Key sectors driving growth include Real Estate, PSU Banks, CPSE, Auto, Pharma, S&P Industrials, and FMCG.
Investment Strength
India’s economy is further bolstered by investments in SIP (Systematic Investment Plans). In FY23, the average monthly SIP inflow reached around Rs 13,000 crores, showcasing investor confidence.
Commodity Outlook
The 2024 commodity outlook suggests a moderation in US economic momentum and inflation, potentially boosting gold’s appeal. Silver may see increased industrial demand due to the growing need for green energy.
Currency Stability
The Indian Rupee stands out as one of the most stable currencies globally, thanks to assertive central bank interventions, robust economic growth, and lower inflation. RBI’s strategic efforts prevent excessive Rupee appreciation, ensuring domestic economic strength and international trade resilience.
Market Outlook and Investment Opportunities
Looking ahead, our market outlook considers a 1-year forward EPS perspective. Based on this, our base case target is 21,834, representing 18 times the FY26 estimated EPS of Rs 1,213. We believe that various asset classes, including equity, debt, real estate, and gold, present investment opportunities in 2024, promising decent returns over the next 2 to 3 years.
Encouragement for Investors
As we anticipate a positive closure to FY24 with moderate growth and macroeconomic stability, I urge all investors to continue believing in India’s growth story and to stay invested. Wishing you and your family a prosperous and Happy New Year!