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.
India’s economic activity reached a six-month high with a year-on-year growth of 10.6 per cent in August 2023, according to the ICRA Business Activity Monitor.
The uptick is attributed to factors like deficient rainfall’s impact on non-agri sectors and robust domestic demand.
However, the country’s economic momentum may wane due to several challenges.
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.
Fibre2Fashion News Desk (DP)