State of the Indian Economy Report July 2024

This report provides an analysis of the current state of the Indian economy as of July 2024. It outlines the projected GDP growth rate, which is expected to reach approximately 7.5% for FY25, as revised by the Reserve Bank of India. The report highlights the resilience of the domestic economy, supported by high-frequency indicators such as the Purchasing Managers' Index (PMI) for both manufacturing and services. Additionally, it details the fiscal deficit reduction, noting a drop to under 5% from previous levels. The report also discusses the Goods and Services Tax (GST) collections, which saw an 8% increase in June 2024, and the brisk start of kharif sowing, indicating a significant rise in the area sown compared to the previous year. Furthermore, it addresses inflation trends, including the wholesale price index (WPI) and consumer price index (CPI), and concludes with insights on the entry of Indian government bonds into JP Morgan's index, which is anticipated to attract substantial foreign investment.