Macro balancing act in 2024

The combined role of fiscal and monetary policy has been crucial in shepherding India’s economy out of the pandemic. The capex push by the central government over the last four years has been relentless and a key driver of the recovery. Equally, the rapid normalisation of monetary policy in 2022 was crucial to preventing inflation pressures from getting entrenched. Both have contributed to the current outcomes.

With gross domestic product (GDP) growth estimated close to 7 per cent in 2023-24, core inflation below 4 per cent, and headline consumer price inflation (CPI) expected to soften to a 4-5 per

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