India grew at faster pace in FY23; what does it mean for Dalal Street investors?

The Indian economy grew by 7.2% in the fiscal year 2022-23, led by the services sector, beating the government’s previous estimate of 7.0%. The growth was driven by continued investments and net exports, despite higher interest rates and weaker real income growth. Mohit Ralhan, CEO of TIW Capital, expects India to remain one of the fastest-growing major economies despite the RBI’s expectation of growth moderating to 6.5% YoY in FY24. Money managers recommend investing in domestic growth-oriented sectors such as banks, industrials and consumption-driven companies, as they are likely to perform better than those with global exposure.