Global Economic Slowdown: India Stands Out

As major economies like the United States and China face a projected slowdown, India is poised to outpace its global peers, according to a recent Kotak Alternate Asset Managers report. The US economy is expected to slow by 90 basis points, with China seeing a 60 basis point decline, while India maintains its status as the fastest-growing major economy.

Manufacturing Strength and Rural Demand Boost

India's manufacturing sector shows resilience with positive PMI figures, distinguishing it from global counterparts. A favorable monsoon forecast is set to enhance rural demand and improve the inflation outlook, offering a significant lift to agriculture.

Equity Markets and Investor Confidence

Despite geopolitical tensions and softer Q4 FY25 earnings, Indian equity markets have rebounded. Domestic and Foreign Portfolio Investors remain optimistic, with FPIs returning to net buying positions, supported by a declining risk premium on Indian assets.

Currency Strength and Economic Resilience

The Indian rupee gains against the US dollar, aided by a weaker dollar, FPI inflows, and lower oil prices. The RBI's strategy to build forex reserves, now at USD 688 billion, underscores India's economic stability amidst global uncertainties.