Indian economy remains resilient amid global uncertainties, but the outlook seems softer: NCAER report

“The Purchasing Managers’ Index (PMI) for manufacturing and services declined marginally in July 2024 but maintained its expansionary momentum. However, growth in the Index of Industrial Production (IIP) and IIP for core industries moderated in June 2024," as per the NCAER report.

“But Goods and Services Tax (GST) collections continued to remain buoyant year-over-year,” the NCAER report said.

The report added that in July 2024, GST collections reached Rs 1.8 lakh crore, recording a year-on-year (YoY) growth of 10.3 percent while sequentially the increase was 4.8 percent between June and July.

Consumer Price Index (CPI) headline inflation declined in July 2024, mainly due to an easing of food inflation, the report said, adding that Wholesale Price Inflation also declined in July 2024.

However, the core inflation increased slightly.

The Indian Meteorological Department's (IMD) forecast of above normal rainfall in the second half of the southwest monsoon season comes as a cause for cheer for the farm sector.

The progress of Kharif sowing until the middle of August shows that the proportion of area sown was higher at 94.1 percent compared to 93.7 percent during the same period last year.

The report said bank credit growth of Scheduled Commercial Banks (both food and non-food) moderated in June 2024, while personal loan credit growth and bank credit for services sector decelerated.

The merchandise trade deficit widened while the services trade surplus increased sequentially in July 2024.

The Naukri JobSpeak Index increased year-on-year, and sectors like travel and hospitality, banking, and retail showed an increase in hiring year-on-year, the report said, adding that work demand under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) moderated year-on-year.