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India is likely to grow at 6.7% for the next three years, retaining its tag as the fastest growing major economy, said S&P Global Ratings in its latest report. The economic outlook announced by the global rating agency kept India’s growth forecast unchanged at 6% for FY24, projecting a sharp bounce back to 6.9% in FY25 and FY26.

Fitch Ratings has raised its forecast for India’s economic growth to 6.3% for FY24 from its prior prediction of 6%. This is mostly due to near-term momentum and a stronger outturn in the first quarter. The growth projection is in comparison to the 7.2% GDP growth in FY23.

India's economic activity continued to exhibit resilience in May'23 post a temporary blip in April'23 amidst a seasonal downtrend after a typical surge seen in the month of March.

Net direct tax collection so far in FY24 grew 11% to reach Rs3.80trn, the Ministry of Finance said. The Advance Tax collections for April-June of FY24 stood at Rs1167.76bn as of June 17, reflecting a growth of 13.70% YoY.

India’s merchandise exports (-10.3% YoY) and imports (-6.6% YoY) declined in May’23, and the monthly trade deficit was marginally lower than a year ago. But the merchandise deficit for Apr-May’23 declined 7.7% YoY (slightly better than the 7.1% YoY contraction in the trade deficit in Q4FY23), helped by lower import prices of crude oil, coal and vegetable oil.

Post-pandemic economic recovery was largely driven by growth in gross fixed capital formation (GFCF), which grew 25.6% YoY during FY22 to reach Rs67.9trn in nominal terms. GFCF growth in FY22 was largely driven by household investments into real estate and Central government push towards infrastructure capex while state governments and corporates lagged in terms of capex growth.

Indian infrastructure firms are looking at an annual investment of US$130-176bn in Africa for infrastructure development, Afcons MD S Paramasivan said. He pointed out that there is a funding deficit to the tune of US$60-160bn on infrastructure development in Africa, and there is scope for further investment in multiple areas.

CPI inflation receded to 4.25% YoY in May’23, well within the RBI’s target range of 2-6%, as inflation abated across the board. Food and beverages inflation moderated to 3.3% in May’23 (an 18-month low), energy inflation to a 26-month low of 4.6% YoY, and transport and communication prices to a 42-month low of 1.1% YoY.