Our latest edition of Peripheral Vision for June 2024 spotlights three key developments:
- Retail inflation surpassed 5%, and wholesale inflation hit a 16-month high of 3.36%, driven mainly by rising food prices.
- The PMI Index continued to show expansion across both manufacturing and services sectors.
- The Indian startup ecosystem experienced robust growth, attracting nearly $7 billion in funding during the first half of 2024, with notable investment activity in June.
June 2024 witnessed a notable rise in inflation rates in India, mainly driven by food price increases. Retail inflation surpassed the 5% mark, reversing a five-month downward trend. The wholesale price index (WPI) also surged to a 16-month high of 3.36%, with increases across several sectors, including food products, crude petroleum, natural gas, and other manufactured goods.
Despite these economic headwinds, the Purchasing Managers' Index (PMI) remained optimistic. The Manufacturing PMI rose to 58.3 from 57.5 in May, indicating ongoing expansion in the sector. This growth was spurred by strong demand conditions, leading to record-high job creation, increased new orders, and higher output levels.
The Services PMI showed robust performance, climbing from 60.2 in May to 60.5 in June. This significant uptick, surpassing the previous month's pace, was driven by strong demand and increased new business, painting a promising picture for the service sector.
On the startup front, India's entrepreneurial landscape demonstrated remarkable resilience and growth. In the first half of 2024, startups secured nearly $7 billion in funding, exceeding the $5.92 billion raised in 2023, though still below the $20 billion peak of H1 2022. June was robust, with funding surging to nearly $2 billion, more than double the average monthly amount until May. Substantial investment rounds and significant deals with late-stage firms like Zepto, Flipkart, PharmEasy, and Lenskart fueled this surge.
India's economic landscape remains dynamic despite inflationary pressures, with strong manufacturing growth and a thriving startup ecosystem.
Stay abreast of macro trends using #PeripheralVision, Kanvic's interactive dashboard that helps C-level executives spot subtle signals and adapt strategies to emerging realities.
