What if I told you that the election outcomes next week don’t matter? India is in a great place. And the good news keeps flowing in.
The first growth numbers are punching above expectations at 8.2%. Second, S&P Global raised the outlook from neutral to stable, and a rating upgrade is on the table if we continue on this path of fiscal consolidation. The FY24 fiscal deficit numbers are down to 5.6% from an estimate of 5.8%. Third, the southwest monsoons have arrived a little earlier than expected and are full of promise. Worries of a below-average monsoon have been allayed. Fourth, FIIs have been pouring money into fixed-income markets, and this trend is likely to continue with bond index inclusion. Lastly, the RBI’s record dividend payout of 2.11 lakh crores has placed government finances on a good wicket.
Things couldn’t possibly be looking better. We don’t need to look at election cues anymore. There is more than enough merit in the data.