With sticky core inflation and uncertain macros, the outlook for the rural economy isn’t positive. Further push from the union government this election year might be just what the doctor ordered.
As the government of India gets ready to release the macro-economic data for the third quarter of FY2023 on Tuesday, February 28, market experts see the Indian economy growing at a slower pace of 4.3-4.6 percent during the quarter compared to 6.3 percent in Q2FY23.
Like the previous quarter, the services sector has again come to the rescue as many segments in manufacturing are experiencing a slowdown in global demand.
Experts say that economic activity was uneven in Q3, in spite of robust demand for contact-intensive services, and upbeat festive season sentiment.
Trends in government spending were disparate, with an expansion in revenue spending, along with a base effect-led contraction in capital spending.