Monthly Review of the Economy - February 2024 1 Comments are welcome at directorgeneral@ncaer.org. The findings, interpretations, and conclusions expressed are those of the authors and do not necessarily

• The Union Government reduced the fiscal deficit target to 5.1 percent of nominal GDP for the FY2024-25 (BE) from 5.8 percent (of nominal GDP) as per the revised estimates of the FY2023-24 (RE) and 5.9 percent (of nominal GDP), as per the budget estimates of the FY2023-24 (BE) (Figure 6). [...] • The Union Government increased the capital expenditure to 3.4 as a percent of nominal GDP for the FY2024-25 (BE), from 3.2 percent(of nominal GDP) as per the revised estimates of the FY2023-24 (RE) and 3.3 percent (of nominal GDP), as per the budget estimates of the FY2023-24 (BE) (Figure 7). [...] Percent As a Percent of Nominal GDP As a Percent of Nominal GDP PMI for services accelerated further, PMI for manufacturing regained Real Sector momentum; growth in IIP accelerated on a year-over-year basis • The Purchasing Manager’s Index (PMI) for manufacturing activity accelerated to 56.5 in January 2024 from the value of 54.9 in Decem. [...] • As per the Vahan Dashboard of the Government of India, the overall EV sales registered a year-over-year growth of 39.8 percent in January 2024. [...] • Personal loans and the services sector experienced a growth in credit expansion of 28.5 percent and 22.9 percent in December 2023, respectively, but the growth in credit across both the sectors moderated from 30.1 percent and 25.4 percent, respectively, in November 2023 on a year-over-year basis.