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Robust growth momentum to continue in India says OPEC, Manufacturing expected to be a key driver of expansion
OPEC stated in a monthly report that the strong growth seen in India during 4Q23 appears to be carrying over into 2024. India's economy grew by 8.4%, y-o-y, in 4Q23, with services expanding by 7.0%, y-o-y, and manufacturing by 11.6%, y-o-y. Industrial production also maintained momentum into 2024, with a 5.7%, y-o-y, increase in February and 4.1% growth in January, following a 4.3%, y-o-y, rise in December. Amidst these positive trends, consumer confidence rose to 98.5 in March, up from 95.1 in January. The ongoing election cycle is expected to boost spending, especially in rural areas. Combined with more efficient delivery mechanisms, the impact of election- related spending is expected to be significant. The Reserve Bank of India (RBI) held the key repo rate steady at 6.5% in April.