Indian Economy share price target

India’s industrial growth strengthened to 5.2% YoY in May’23, with manufacturing accelerating to 5.7% YoY and mining to 6.4% YoY growth in May’23. Both manufacturing and industry have accelerated in Apr-May’23 to 4.8% YoY (from 4.1% YoY in Q4FY23) and 5.5% YoY growth (from 3.4% YoY in Q4FY23) respectively.

The GST Council after its 50th meet in New Delhi on Tuesday has agreed to levy 28% GST on online gaming, horse racing, casinos on full value. GST council agreed that there should be no distinction between ‘game of skill and game of chance.’

Maruti Suzuki is betting big on strong hybrid and compressed natural gas vehicles and expects cumulative sales of these models in FY24 to inch closer to peak volumes the company had reported in the diesel vehicle segment five years ago.

The output of eight infrastructure sectors namely coal, steel, cement, fertiliser, electricity, natural gas, refinery products and crude oil as captured by India's core index continued to rise

The Balance of Payments current account deficit (CAD) narrowed to US$1.3bn (0.2% of GDP) in Jan-Mar’23, slightly worse than our forecast (a surplus of 0.3% of GDP), primarily because higher repatriation of profits by foreign corporates widened the primary incomes deficit to US$12.6bn in Q4FY23 (from US$8.4bn in Q4FY22).

The Indian government is preparing a new multi-billion dollar subsidy scheme for companies making electricity grid batteries as part of its transition to clean energy, as per a power ministry proposal.

Current Account Deficit Narrows

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.