India's economic activity hits 6-month high in August 2023

The index also showed robust trends in month-on-month (MoM) growth and expansion over pre-COVID-19 levels. It rose by a healthy 3.2 per cent on a MoM basis in August 2023, compared to a 0.9 per cent increase in August 2022. Additionally, the index expanded by approximately 29 per cent over pre- COVID-19 levels of 2019, up from 22 per cent in July 2023. All the non-financial indicators exceeded their pre-COVID-19 volumes for the first time since the pandemic began, as per ICRA.

However, this upward momentum may not sustain into the second half of the financial year 2024. Factors such as sub-par monsoon, cumulative monetary tightening, and a potential slowdown in government capital expenditure as the 2024 general elections approach could dampen economic activity.

ALCHEMPro News Desk (DP)