JPMorgan raises 2024 economic outlook for India, but remains cautious of Global headwinds

MUMBAI: JPMorgan increased its 2024 economic forecast for India — but only marginally — saying the country’s growth will be affected by a slowdown in global growth momentum.

The investment bank raised its 2024 growth forecast from 5% to 5.5%. The revision follows the latest gross domestic product data this week which showed the Indian economy accelerated 6.1% in the January to March quarter, an increase from 4.5%thepreviousquarter.

Theeconomystartedtheyearona “very strong note as growth came in much faster, or much higher, than what market consensus were,” DBS Bank Senior Economist RadhikaRao said.

The South Asian nation’s strong growth was driven by a pick up in domestic demand for goods and servicesaswellasstrongexports.

“Wehavebeenflaggingthecontinued strength of India’s service exports and how goods exports were also doing cyclically better than had been expected,”JPMorgansaidinanote.

Economies that are heavily dependent on trade are losing momentum, she said, but those like India that have been focused on “organic drivers” of growth are faring better. However, JPMorgan still remains cautious on the country’s growthprospectsnextyear.

Although the government has announcedaboostincapexspending, it will take time for that to translate into a broader private investment cycle.

Investments from India have not “moved very much” in the last few years, said Jahangir Aziz, Chief of Emerging Market economics at JPMorgan.

“In the last six months, we’ve seen a perceptible drop of foreign direct investments across the world,” Aziz said, adding that FDI in both ChinaandIndiahavedipped.

“Private investments in India have essentially flatlined … And public spending from the government’s investments have flatlined at 7% for the last 10 years,” hehighlighted.

The investment bank also expects exports from India to decrease as global growth slows with more advanced economies heading toward arecession.

Vizag Port Authority creates two records, handled highest throughput and vessels in May 2023

VISAKHAPATNAM: The Visakhapatnam Port Authority (VPA) created two new records in the month of May by handling the highest number of containers ever recorded in a month in its container terminal, surpassingthepreviousrecords.

Visakha Container Terminal Private Limited (VCTPL), the PPP / BOT Operator of Vizag Port, handled arecordthroughputof61,468 TEUsin the month of May 2023, which is the highest TEU record in a month surpassing the previous best of 56,578 TEUsinMarch2023.Thelengthofthe ContainerTerminalis390meters,and aBeamof42meters,withaDraftof16 meters,depth.

VCTPL also achieved another record by handling 49 vessels in the same month of May, which is the highest number of vessels handled record in a month surpassing 42vesselshandledinApril2023.

The VPA Chairperson Dr M Angamuthu appreciated the officials and the Terminal Operator in achieving the new record. He also advised the port employees to do teamworktoscalenewrecords.