India: This Is As Good As It Gets For the Economy
177 Views, 10 May 2022 15:26
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- Corporate India booked a robust earnings season for 1Q22, which is a product of the sanguine macro backdrop and the release of pent-up demand with the easing of most restrictions.
- However, this may be as good as it gets for the economy amid several headwinds to growth. The recent heat waves threatens industrial activity and wheat crop yields.
- Capacity utilisation rates remain low, holding back the capex drive and investment growth, despite the buoyant earnings season. Watch for growing pressure on the RBI to keep yields in check.