The manufacturing and core sectors are anticipated to be two of the main drivers of the economy over the medium term, according to Acuité Ratings & Research Ltd., despite the fact that the combined Index of Eight Core Industries (ICI) increased at a moderate 3.6% year over year in January 2024—a 15-month low print on an annualized basis.

 The post-COVID period has witnessed a discernible improvement in core sector performance, mostly due to the steady increase in public infrastructure spending. The average growth in the core sector from the beginning of the period (2011–12) to the year before Covid (2019–20) has been 3.5%.

Despite the economic disturbance, average sector growth in the Covid and post-Covid period (FY20-FY24, Apr-Jan) was 4.4%.

Suman Chowdhury, Chief Economist and Head of Research at Acuité Ratings & Research, stated that the growth in the current fiscal year has been 7.7% during the first ten months. Even after accounting for moderating growth in the next two months, the growth is expected to be roughly 7.0 percent, in line with the NSO GDP growth estimates of 7.6% for FY24.