Subtle Strength – June 2024

Indian Economy

S&P revises India’s outlook to positive

Here’s Why S&P Revised India’s Outlook to Positive:

• Positive Economic Impact: India’s robust economic growth is improving its credit metrics.
• Future Growth: Strong economic fundamentals are expected to support growth over the next two to three years.
• Policy Continuity: Regardless of the election outcome, continuity in economic reforms and fiscal policies is anticipated.
• Infrastructure Investment: Increasing government spending on infrastructure is reducing bottlenecks and promoting higher growth.
• Government Focus: Ongoing consolidation efforts are a priority for the government.
• Credit Outlook: S&P revised its outlook on India to positive from stable.

Emerging markets are growing fast; India emerges stronger

Emerging markets outperform the world

India leads the pack

Robust Indian macros

Expect India to maintain lead within the EM pack

India is already the fastest-growing economy; on track to feature among the global top three

$7 Tn Indian Economy

Now in Sight

Key Drivers

Consumption + Investment

India today is where China was in 2007

^{_{Source: SBI Funds Management, World Economic Outlook, IMF, Fisdom Research}}