The year 2023 was mixed for the Indian economy, with gross domestic product having expanded quicker than expected but the effects of a below-normal monsoon keeping inflation fears intact.

While the government lent support to the economy through capital expenditure, gross fixed capital formation, a proxy for investments, remains low despite some improvement.

This year, personal income tax contributed to the government’s coffers as much as corporate tax.

On one hand, a sharp rise in tomato and onion prices foiled plans to contain inflation; on the other, sticky food prices kept the central bank on its toes.

Despite the risks, the Indian economy is likely to remain a bright spot, while global growth slowdown is also less pronounced than previously expected.

Moreover, India’s G20 efforts were one of several things that went well on a global stage, helping New Delhi improve its position on soft power after a slide in 2021.

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