Key View

• The easing of labour market restrictions in the Indian state of Karnataka in February constitutes a positive development for the country’s broader outlook for economic reform.
• However, there is no guarantee that the latest changes will be permanent, and we at Fitch Solutions believe that it will be difficult for most other state

Key View:

• At Fitch Solutions, we highlight that India’s February 2023 discovery of lithium deposits is likely to bring significant upside to the country’s mining industry in the long term, with considerable time required before commercial production if extraction is successful.
• The production of lithium domestically will be beneficial for

Key View

• We at Fitch Solutions expect Indian steelmakers to make an earnings recovery in Q123 after registering significant declines in Q422, boosted by higher prices and supportive policy.
• The FY2023-24 Union Budget will work to support domestic steel demand through increased infrastructure expenditure, although it did not address any

Key View

• We have revised up our health expenditure forecast for India with an increase of 15.0% in health spending for 2023.
• The focus of India’s 2023 union budget concerning healthcare will be expanding the number of healthcare personnel in the long term to support the country’s growing and ageing population.
• New centres for excellence for

The Latest: On February 1, 2023, India's Finance Minister Nirmala Sitharaman unveiled the central government’s Union Budget for FY2023 (April 2023-March 2024). The Ministry of Finance is aiming to lower the fiscal deficit-to-GDP ratio further, from its own estimate of 6.4% in FY2022, to 5.9% in FY2023. The budget includes a provision to remove

The Latest:

On February 1, India Finance Minister Nirmala Sitharaman unveiled the central government’s Union Budget for FY2023 (April 2023-March 2024). The government is aiming to boost capital spending by a substantial 33%, to INR10trn (3.3% of GDP) in FY2023.

Implications:

The budget includes a strong increase of capital investment by a

Key View

• Indian agritech startup Cropin has raised approximately USD14mn in funding. This comes at a time when funding in the agritech sector has been growing due to its perceived ability to solve current challenges plaguing the agriculture industry, such as rising food prices and climate change.

• At Fitch Solutions, we too believe that

Key View

• We expect India’s solar photovoltaic (PV) power capacity to experience strong expansion over the coming years following rooftop solar support through legislative amendments and extension subsidies.
• As India’s domestic solar manufacturing sector expands, we believe headwinds to solar's rapid expansion, brought by protectionist

Key View

• At Fitch Solutions, we draw attention to reports that India will look to reduce state subsidies for food and fertilisers in the FY2023/24 federal budget as part of a broader effort to reduce the government’s fiscal deficit, having already scrapped a Covid-era food distribution scheme and revised gas procurement rules for domestic

Key View

• At Fitch Solutions, we are lowering our FY2022 Indian economic growth forecasts from 8.0% to 7.3% and our FY2023 forecasts from 6.7% to 6.5%.
• The 6.3% expansion in Q322 (July-September) real GDP was weaker than we had expected, and a further slowdown is likely to follow due to elevated inflation, tightened monetary policy and weak