Annual Investment Outlook CY2024

India remains the fastest growing major economy in the world and well on track to become the world’s 3rd largest over the next 5 years. It has structurally transitioned to a low macroeconomic volatility regime which will support lower risk premium and higher valuations. The macro-outlook for India also seems to be enjoying a Goldilocks scenario with reasonable growth momentum, stable commodity prices, especially crude, slowing inflation and a weakening dollar bias. India’s GDP is expected to grow 6.5% in FY25.

The fund house believes the new year will be brighter, as some of the key concerns of 2023 – such as US recession, inflation, rate hikes, geopolitical tensions – have receded. The interest rate cycle has likely peaked out with an expectation of rate easing cycle across most economies beginning. ABSLAMC expects a soft landing in the US and a slowdown in global growth, but not an outright global recession. 2024 will be a year when more than 60% of the world population goes for elections and therefore fiscal policy is expected to remain loose globally. Overall, the global macro backdrop has turned supportive.

In our flagship annual report, our investment team analyses macros, markets, and sectoral trends to provide an outlook for the year ahead. This report is aimed at providing our investors and partners with an overview of the economic setup and the market trends going forward. The deep research and analysis helps to draw a comprehensive picture of the investment environment.