Budget 2023: India's Buzzing Economic Activity Belies Fears Of A Slowdown
NDTV
Consumer spending boosted tax collection and manufacturers signalled optimism about the future, while services sector saw expansion of new businesses.
India's economy picked up speed in December as business conditions improved, marking a rebound for the South Asian nation that had showed signs of a slowdown the preceding month.
The needle indicating so-called animal spirits moved right after holding steady for five straight months - indicating stronger overall economic activity as 2022 drew to a close. Consumer spending boosted tax collection and manufacturers signaled optimism about the future, while services sector saw expansion of new businesses.
The reading comes ahead of the unveiling of India's budget on Feb. 1, when Finance Minister Nirmala Sitharaman is set to highlight India's potential to grow at a world-beating pace in the year beginning April. The performance of Asia's third-largest economy contrasts with that of many developed nations, which face recessions this year.
India still has some vulnerabilities on the path ahead. Exports contracted in two of the past three months, leaving several companies struggling to secure new work from key overseas markets. Prices of finished products rose as firms passed on higher input costs and business expenses. Among the eight indicators tracked by Bloomberg, India's unemployment inched up and banks witnessed lower demand for credit.
