The Indian economy has maintained its growth momentum since last Diwali as the economy opened. Except for a slight dip in 4QFY22 growth owing to Omicron-related restrictions, the 13.5percent YoY growth in 1QFY23 suggests that the economy is on the right track. The momentum is continuing with both Manufacturing and Services PMI posting expansion as the demand conditions remain strong. Owing to steady economic growth, the trend in tax collections (7 straight months of Rs1.4 Lakh Crs in GST collections) is likely to sustain, which should enable the Government to be closer to its Fiscal Deficit target and maintain its focus on Capex. Meanwhile, the environment is also conducive for Private investments owing to lower debt levels and healthy banking metrics.

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