GDP growth may moderate in H2

New Delhi India has risen from being the 10th largest economy in the world in 2014 to the fifth largest now on the back of ‘landmark’ reforms like GST and an unprecedented infrastructure push, Bernstein said in a report on the Modi government’s tenure.

The brokerage in a 31-page report titled ‘The decade under PM Modi - a deep-dive’, hailed landmark reforms, inflation control and financial inclusion and digitisation despite inheriting a weak economy with several institutions in distress.

“Fortune strikes overnight - for some, it is by luck, and for most, it is led by years of effort. The Indian story is similar, becoming more believable even as the building blocks took over a decade to strengthen,” it said.

Under Modi, India has seen tremendous progress in several areas, including digitisation, formalisation of the economy, a better policy environment to attract investments for manufacturing initiatives and a step-up in infra spending.

“The building blocks have been put in place, and although economic growth has been sluggish for several years in the past decade - part of that was unwinding the excesses and strengthening the economy through new reform initiatives. The building blocks are clearly in place for a positive India cycle as long as the continuity of policies remains. We remain positive on the broader markets, even as we see room for some moderation in 2HFY24 macro, as we believe that the cycle view will continue to limit downside risks,” the report said.