Panorama – December 2023

Panorama December 2023 edition is out now!

Panorama is a meticulously crafted report that offers a comprehensive view of the macro factors and market trends shaping India’s economic landscape.

Here are the key insights from the report:

  1. India’s GDP growth surpassed expectations in H1FY24, driven by robust services sector activity and a turnaround in manufacturing. Investments recorded a robust 9.5% YoY growth in H1FY24, while private consumption remained subdued.
  2. Manufacturing value added was driven by strong operating profit growth, as the fall in raw material costs led to improved margins. However, further improvement in margins may be limited.
  3. Agricultural growth disappointed on account of poor kharif production. Rural sector recovery will be affected if the Rabi season gets impacted due to adverse climatic conditions.
  4. Both staples and discretionary consumption volume growth slowed in Q2 FY24 as companies have refrained from passing on the reduction in raw material costs to consumers. The festive season auto sales have been robust. However, there is a notable excess of passenger vehicle inventory, surpassing 60 days. This may lead to reduced wholesale dispatches to dealers in the future.
  5. Poor hiring activity, attributed to a sharp drop in IT hiring, appears to have impacted consumption. Hiring in other sectors has been flat to low in October- November ’23 compared to the previous year.
  6. Investments have substantially outpaced pre-pandemic trends due to strong government capex and recovery in private capex. The strong investment pipeline suggests that investment momentum will continue.

Click here to read the full report.

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