Forum Views - March 2023

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

Chief Executive Officer

Dr. V. Aditya Srinivas

Chief Operating Officer

and Chief Economist

FORUM VIEWS, MARCH 2023 edition

INDIAN ECONOMY STRONG AMONG GLOBAL HEADWINDS: The numbers that are coming

from the macroeconomic front clearly show that the Indian economy is far stronger as compared to

the global economies. The Budget projected that our GDP would be 7% which is one of the highest

in the current times as the world GDP is likely to be 2.9%. The US Economy is growing at 1.9% and

China GDP is at 3.9%.

F R O M

THE

BBF SECRETARIAT

Globally all major central banks have increased interest rates near the terminal rates. The US Fed

Reserve has already reached it around 5% and the UK Bank of England is at 4%. The possibility of

now aggressive rate hikes is very less. Inflation globally has been coming down. The US inflation has

come down from 9% to 6.5%. Indian inflation CPI has increased to 6.52% which is above the 6%

mark of RBI.

RBI has also increased the Repo rate by 25 basis point to 6.5% in the latest monetary policy meet.

The repo rate has been increased from 4% to 6.5% which is 250 basis point like in last one year. This

has also made the cost of capital more and can affect the demand and consumption in negative way.

India's IIP growth declines to 4.3% in December from 7.3% in November. Industrial growth in

December 2021 was 1 percent. The manufacturing sector also signals slight slowdown and hence

the cost of capital is vital for the industry to gain momentum. The stock markets have witnessed

huge volatility even as the FIIs have been net sellers to the tune of Rs. 30,000 crores while the mutual

funds have been buyers to the tune of Rs. 17000 crores. This has been some support to the markets.

The SIP flows have been more than Rs. 10,000 crores monthly, which is the main flow from the retail

investors. This shows the strength of the retail investor and their faith in the Indian economy.

From

to You...

BBF

We wish you all the joy

and happiness in the world

today and forever.

I N T E R N A T I O N A L

WOMEN’S

day

H A P P Y

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