Indian Economy share price target

India’s current account deficit (CAD) declined to 2.2% of GDP in Q3FY23, as the services and income surplus (totalling US$54.3bn) partly offset the US$72.8bn merchandise trade deficit. The previous quarter’s deficit was cut to 3.7% of GDP, after more complete customs trade data became available, so the 4-quarter moving average of the CAD narrowed to 2.4% of GDP.

Muted growth by historical standards

India's external balance registered notable improvement in Q3FY23

The output of the eight infrastructure sectors namely coal, steel, cement, fertiliser, electricity, natural gas and refinery products as captured by India's core index was tempered in February'23.

Even as the Union Budget has outlined a Rs10trn capital expenditure plan for FY24 to spur growth, domestic companies are likely to see a 10-12% increase in capital expenditure in the coming fiscal, Fitch Ratings said.

The Central Government has passed the Finance Bill, 2023 effecting changes in the taxation of debt mutual funds with amendments to the Budget 2023. As per these amendments, debt mutual funds will no longer enjoy the benefit of long-term capital gains for investments made on or after April 1, 2023.

S&P Global Ratings has retained its economic growth forecast for India at 7% for the current fiscal and 6% for FY24. It has also maintained its forecast of 6.9% growth for the country in FY25. The rating agency, expects retail inflation to fall to 5% in the new fiscal from 6.8% in the current fiscal, but expects the Reserve Bank of India to hike rate following the recent spurt in inflation.

The United Nations Conference on Trade and Development (UNCTAD) on Thursday said global trade in goods is expected to increase by about 1% in the first quarter of 2023 while trade in services is expected to grow around 3%.