According to Rajiv Biswas, Asia Pacific chief economist with S&P Global Market Intelligence, the near-term economic outlook for India is for continued rapid expansion during fiscal 2023-24, underpinned by strong growth in private consumption and investment.

The acceleration of foreign direct investment inflows into India over the last decade reflects the Indian economy's favourable long-term growth outlook, aided by a youthful demographic profile and rapidly rising urban household incomes, he wrote on the company's website.

India's nominal gross domestic product (GDP) measured in US dollar terms is projected to rise from $3.5 trillion in 2022 to $7.3 trillion by 2030. This rapid pace of economic expansion would result in the size of the Indian GDP exceeding Japanese and German GDP by 2030, making India the second largest economy in the Asia-Pacific region, he noted.

The seasonally adjusted S&P Global India manufacturing purchasing managers' index (PMI) was 57.7 in July, broadly in line with the previous month's reading of 57.8. The index indicated that the manufacturing sector would continue to expand rapidly. He wrote that business conditions have improved in each of the last 25 months.

Cost inflation pressures strengthened in July, with acceleration noted by both goods producers and service providers. At the composite level, input costs increased at the fastest rate in a year, he added.