Quarterly GDP growth beats estimates; domestic economy resilient
India's real GDP grew by 7.8% in Q1 2024, resulting in an annual growth rate estimate of 8.2% for FY24, driven by the manufacturing sector, which experienced a 9.9% y-o-y growth. The tertiary sector, encompassing trade, hotels, real estate, and defence, also grew 7.6% y-o-y. The manufacturing PMI for June increased from 57.5 to 58.3, driven by strong demand, leading to the fastest hiring rate in over 19 years.
Q2 2024 witnessed massive investment inflows amounting to INR 231.5 Bn (USD 2.77 Bn), marking a 1.5x q-o-q growth. The Logistics & Industrial (L&I) segment led with 56% share. Foreign investors contributed 76% to total investments, with 73% of funds directed towards the L&I sector. Delhi NCR witnessed 19% of investment inflows, followed by Hyderabad (10%) and Bengaluru (8%). For H1 2024, investment flows reached a record high of INR 322.8 Bn (USD 3.9 Bn), driven by strong Q2 inflows, marking an 80% increase compared to H1 2023. The L&I sector dominated with 41% share, followed by the office sector at 31% and the residential sector at 26%. Amongst cities, Bengaluru led with 13% of the investment share.
The quarter saw corporate transaction volumes witness a 1.9x jump q-o-q. Mumbai drove transaction value with 55% share, followed by Hyderabad (18% share). H1 2024 witnessed transactions 1.28x times higher than same period in last two years.
