Forum Views - January 2024

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Dr. Vispi Rusi Bhathena, PhD (h.c.)

Chief Executive Officer

Dr. V. Aditya Srinivas

Chief Operating Officer

and Chief Economist

The New Year of 2024 brings with it new hopes and faith that our economy and lives will witness positive

changes. In the year 2023, the Indian economy demonstrated considerable strength, with a GDP growth of

7.6%, a robust figure compared to the global GDP at 3%. Notably, retail inflation increased from 4.87 percent

to 5.5 percent which is still below RBI mark of 6.percent. This provides the Reserve Bank of India (RBI) with the

comfort to maintain an unchanged Repo rate. In times of strong economic revival and growth, it is crucial that

the cost of capitalremains affordable.

The core sector holds a significant 40% weightage in the Index of Industrial Production (IIP). In October, core

sector growth reached 12.1%, surpassing the 9.2% recorded in September.

FROM

T H E

BBF SECRETARIAT

This growth is reflected in the expected IIP number for October, ranging from 6 to 8%, which bodes well for

the economy and markets. The consistent average GST collections exceeding Rs. 1.5 lakh crore indicate

robust business activity and increasing economic strength.

Looking ahead, the year 2024 is pivotal for the economy as it coincides with general elections, laying the

groundwork for the next round of economic reforms. Globally, there are expectations of a decline in US

interest rates in 2024. From near-zero on January 1, 2022, these rates have risen to 5.25%, marking a 22-year

high. With interest rates in the US, UK, and the European Union nearing their terminal levels, and global

inflation decreasing, there is a high probability of interest rates decreasing from 2024. This anticipated

reduction would provide a new boost to the world economy, spurring demand and consumption by lowering

the cost of capital, thereby encouraging corporate expansion.

With ambitious targets, the Indian economy is poised to become the third-largest in the world, aiming for a

$7 trillion size by 2030.

FORUM VIEWS, JANUARY 2024 edition

From

to You...

BBF

FORUM VIEWS - JANUARY 2024

WISHING YOU

A LUMINOUS NEW YEAR!

May the year 2024 be a tapestry

of joy, success, and cherished

moments. Embrace each day

with enthusiasm, turning

dreams into reality. Let

laughter echo, love flourish,

and the journey ahead be

sprinkled with magic!

BBF PHYSICAL INTERACTION MEETING SERIES

Ahmedabad, 22 November

Mumbai, 24 November

Kolkata, 30 November

Delhi, 8 December

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