India’s GDP growth improved to 7.8% YoY in Q1 FY24 (Apr-Jun 2023) from 6.1% in the previous quarter. Growth was lifted by an improvement in private consumption growth which was likely due to a recovery in rural demand while investment activity remained strong. Among major sectors, services sector growth jumped owing to the stellar performance of the financial, real estate and professional services sub-sector. Industrial sector growth moderated while agriculture sector growth slowed. While we retain a positive outlook, near term risks persist due to sub-par monsoon conditions which could affect rural incomes and consequently demand in the upcoming festive season. Beyond the immediate near term, we see a slowing global economy as a continuing risk to the country’s economic outlook