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In Q3FY24, the Indian economy outperformed expectations, growing at 8.4%, surpassing the predicted 6.6% rate. However, a significant divergence between GDP and Gross Value Added (GVA) raised concerns, with GVA growth at 6.5%. Economists caution that the high GDP may not reflect balanced growth, citing a decline in agriculture, uneven private consumption, and increased reliance on public capex.

RBI MPC: India's policymakers see a 'Goldilocks scenario' with a 4.5% inflation and 7% growth forecast for FY25, suggesting a balanced economy. The Reserve Bank of India's Monetary Policy Committee agrees on the need for caution amid uncertainties. While optimistic about growth, economists urge vigilance due to global headwinds. Nomura expects a cumulative 100 bps rate cut, while others predict a pause until H1FY25.

India's policymakers see a 'Goldilocks scenario' with a 4.5% inflation and 7% growth forecast for FY25, suggesting a balanced economy. The Reserve Bank of India's Monetary Policy Committee agrees on the need for caution amid uncertainties. While optimistic about growth, economists urge vigilance due to global headwinds. Nomura expects a cumulative 100 bps rate cut, while others predict a pause until H1FY25.

The benchmark 10-year bond yield closed lower at 7.063% Tuesday from the previous close of 7.0968%, while 13 state governments collectively sold more than Rs 28,000 crore of bonds.

India's trade deficit narrows and services exports increase, prompting economists to lower the current account deficit (CAD) estimates for FY24. Capital inflows are expected to improve, but the rupee may not strengthen as the central bank aims to boost reserves. April-January period sees lower net services exports and improved FDI flows.