Domestic Urban Consumption: Domestic urban consumption figures in India have created a new record. Consumption, due to the festive season, reached the highest level in three months. According to experts, the reduction in price pressure has led to a sharp increase in the performance of the south-west monsoon with the onset of the festival season. Due to this the demand has increased. According to the TRUC index prepared by economic consultancy firm Quantico Research, the urban consumption index increased from 0.62 in August 2023 to a three-month high of 0.66 in September 2023. However, it still remains below the recent peak of 0.70 till May 2023. It said the urban recovery was driven by strong passenger vehicle sales and air passenger traffic. This was aided by a decline in retail urban inflation. A sharp improvement has been recorded in rural consumption. The index increased from 0.57 in August 2023 to 0.65 in September 2023. There was a surge in the sales of two-wheelers due to the seasonal increase in tractor sales and ahead of the festive season. Improvement in CPI rural inflation also provided support. The economic advisory firm introduced the index to track consumption in both urban and rural areas.
Increase in demand due to these reasons
The firm’s report pointed to a number of data points such as passenger car sales, air traffic and other consumer trends such as consumption growth, which had slowed due to rising inflation and tightening of interest rates. Data showed retail inflation fell to a four-month low in October as some food and fuel prices eased, slipping slightly below the 5% mark and stubborn price pressures eased much. Necessary relief has been received and expectations about possible interest rates have been raised. Cut in the next year. The report said that due to the delay in Diwali this year, the demand for the festive season is likely to remain strong in October 2023 as well.
Moody’s Investors said this on growth
In the first week of this month, Moody’s had released estimates regarding India’s growth rate. In this, Moody’s Investors Service has maintained India’s economic growth rate estimate for 2023 at 6.7 percent. Moody’s believes that due to strong domestic demand in the country, the pace of growth will continue in the near future. With exports remaining weak due to the adverse global economic backdrop, Moody’s said in its ‘Global Macroeconomic Outlook-2024-25’ that sustained growth in domestic demand is driving India’s economy forward. Moody’s said that we expect India’s real gross domestic product (GDP) growth rate to increase by about 6.7 percent in 2023, 6.1 percent in 2024 and 6.3 percent in 2025. India’s economic growth rate was 7.8 percent in the June quarter, which was 6.1 percent in the March quarter. The country’s economic growth has been strong due to strong domestic consumption, solid capital expenditure and rapid service sector activity.
India’s star will remain high
In the global economy, India is being seen as a trigger of the global economy. In such a situation, S&P Global Marketing has maintained a positive stance in its report regarding the country’s economy. S&P Global Ratings on Monday increased India’s growth forecast for the current financial year 2023-24 from six percent to 6.4 percent. The US-based agency said strong domestic momentum appears to be overcoming headwinds posed by high food inflation and weak exports, leading to the growth forecast being raised. S&P Global Ratings, however, has cut the growth forecast for the next financial year 2024-25 to 6.4 per cent as it believes that growth will slow down in the second half (October-March) of the current financial year due to higher base effect and slower global growth. It will be slow. S&P said we have raised our forecast for India’s GDP growth for fiscal 2023-24 (ending March 2024) to 6.4 percent from 6 percent, as strong domestic momentum is offset by higher food inflation and weak exports. Wally seems to be compensating for the obstacles.