Consumer durables output contracts in India, but hopes are high for festive season
The output of consumer durable goods in India contracted by 2.7 percent in July, even as industrial growth hit a five-month high of 5.7 percent. The contraction was driven by weak demand for clothes, furniture, and computers and electronic and optical products.
However, hopes are high that the festive season will boost demand for consumer durables. Economists at Motilal Oswal Financial Services expect industrial growth to rise to 8-10 percent in the next three months, “supported by a favourable base effect and the onset of the festive season”.
The festive season in India typically runs from September to December and is a major shopping period. It is also a time when many people buy new consumer durables.
However, there are some concerns about the outlook for the rural economy. Rural indicators are showing some signs of moderation, with slowdown in two-wheeler sales, softer diesel consumption growth and slowdown in tractor sales. The uneven monsoon performance has also resulted in demand for jobs under MGNREGA rising in August.
Overall, the outlook for consumer durables in India is mixed. While there are hopes that the festive season will boost demand, there are also concerns about the rural economy.
Here are some of the key takeaways from the article:
- The output of consumer durable goods in India contracted by 2.7 percent in July, even as industrial growth hit a five-month high of 5.7 percent.
- The contraction was driven by weak demand for clothes, furniture, and computers and electronic and optical products.
- However, hopes are high that the festive season will boost demand for consumer durables.
- Economists at Motilal Oswal Financial Services expect industrial growth to rise to 8-10 percent in the next three months, “supported by a favourable base effect and the onset of the festive season”.
- There are some concerns about the outlook for the rural economy, as rural indicators are showing some signs of moderation.
- 18 Sep
Gold ETFs Attract Highest Inflow in 16 Months in August
Gold ETFs attracted Rs 1,028 crore in August 2023, the highest inflow in 16 months. This is despite continued hikes in interest rates in the US, which have led to a slowing down in growth rate there. The factors driving inflows into gold ETFs include its role as a safe haven asset, hedge against inflation, and diversification tool. The outlook for gold ETFs is positive in the near term, given the current macroeconomic environment. Investors who are looking to add a safe haven asset to their portfolio and/or hedge against inflation may consider investing in gold ETFs. However, it is important to note that gold is a volatile asset and investors should carefully consider their risk tolerance and investment objectives before investing.
- 16 Sep
Former RBI Governor C Rangarajan Says India Needs to Grow Fast to Increase Per Capita Income
Former RBI Governor C Rangarajan says India needs to grow fast to increase per capita income and become a developed economy. He says India needs to achieve 7% growth continuously over the next two decades, absorb new technologies, develop a skilled workforce, and create jobs.
- 15 Sep
Yatra Online’s IPO Receives Muted Response on Day 1
Yatra Online's IPO received a muted response from investors on the first day of bidding, with only 11% of the issue subscribed. Retail investors were the most supportive, while high networth individuals and qualified institutional buyers have yet to start putting in bids.
- 12 Sep
India’s Industrial Output Grows 5.7% in July, Highest in Five Months
the industrial output growth in July is a positive sign, but economists will be closely monitoring the manufacturing sector in the coming months to get a better sense of the overall health of the Indian economy.
- 12 Sep
Indian shrimp production to decline by 15-20% in FY23
Indian shrimp production is set to decline by 15-20% in the current fiscal year due to a sharp fall in global prices and sluggish exports. The decline in production is being attributed to a number of factors, including a glut in the global shrimp market, economic problems in major importing countries, and increased competition from other shrimp producers. The aquaculture farmers are stocking less in their farms due to the drop in prices, and the seafood export target of $9.1 billion for the current fiscal year appears far-fetched. However, the passing of the Coastal Aquaculture Authority (Amendment) Bill 2023 has come as a huge boost to the seafood sector, and the industry hopes that the passage of the bill will help to boost the growth of the seafood sector in India.