Indian Economy share price target

In October 2023, the Wholesale Price Index (WPI) inflation and Consumer Price Index (CPI) inflation fell. The PMI reading indicated growth, compared to the previous month.

The unemployment rate rose to a two-year high; Foreign Institutional Investment (FII) outflow surged; crude oil prices fell, while consumption increased.

India's investment activity has stayed robust in Q2 FY2024; as indicated in YoY growth. Overall, demand to be cautious in H2 amid run-up to the General Elections, geopolitical tensions in Israel and Ukraine, and persistent inflation in parts of the world.

Capital Expenditure (capex) substantially augments the economy's productive capacity and exerts a more profound influence on long-term growth and productivity in contrast to revenue expenditure

September 2023 saw a contraction in Wholesale Price Index (WPI) inflation, and a fall in Consumer Price Index (CPI) inflation. The unemployment rate fell to a one-year low, while Foreign Institutional Investment (FII) reported an outflow. Crude oil prices rose, and consumption decreased. Service PMI and manufacturing PMI indicated growth during September.

India’s merchandise exports contracted a modest 2.6% YoY in Sep’23, and Aug’23’s initially-reported 6.9% YoY decline in exports was revised up to growth of +3.9% YoY. Consequently, India’s goods exports declined a modest 2.9% YoY in Jul-Sep’23 (while China’s exports declined 9.6% YoY and South Korea’s 9.3% YoY during the quarter). Goods imports declined 15% YoY in Sep’23, and 11.6% YoY in Q2FY24, and the quarterly goods trade deficit declined 23.9% YoY.

The great hope of the Indian government’s much-celebrated Production Linked Incentive (PLI) schemes is to build powerful, globally competitive businesses across Indian industries Launched as part of the Atmanirbhar Bharat campaign, the PLI scheme hopes to make India a manufacturing powerhouse, through incentives for sales of domestically manufactured products.

Credit growth remains healthy; deposit growth picks up pace