India Inc net profit share in GDP now just shy of 5% after robust Q2

Expected to top 8% in five years

GDP Growth

Samie ModakSundar Sethuraman Mumbai

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India Inc’s net profit as a percentage of the country's gross domestic product (GDP) is just shy of reaching 5 per cent, bolstered by strong earnings growth in the second quarter of 2023-24. Analysts interpret this as an indication that a corporate profit upcycle is in progress, with projections suggesting that this share could exceed 8 per cent within the next five years, driven by bullish earnings growth expectations.
“We believe we are only halfway through a profit cycle, with the profit share in GDP rising from a low of 2 per cent in 2020 to about 5 per cent currently, and likely heading to 8 per cent in the coming four to five years. This implies about 20 per

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First Published: Nov 20 2023 | 9:24 PM IST

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