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In conversation with the Bombay Chamber, Navneet Munot, MD & CEO of HDFC Asset Management Company, shares insights into the economic landscape of India for 2024 amidst global dynamics.

What is your outlook on the Indian economy in 2024, considering global dynamics? What key factors do you think will drive or hinder growth?

Over the past couple of years, India has been far more resilient compared to other economies. The macro-economic stability – growth, inflation, external sector, political – along with long term structural factors like favourable demography, financialisation of savings, shift in global supply chain, policy environment, rising services exports makes India primed for sustained growth in years to come. Risk to this outlook include any spikes in commodity prices due to geopolitical tensions, leading to inflation momentum reacceleration.

How do you assess the current business environment in India and what factors do you anticipate influencing investment decisions in 2024? Any specific sectors of interest or concern?

From a macro-economic standpoint, India is one of the few economies which looks well poised in the years to come owing to various structural tailwinds. With good growth potential ahead in India’s Amrtikaal, opportunities for alpha generation exist across the entire equity market spectrum, with bottom-up stock selection holding the key. In a way, India is truly a stock-pickers paradise due to the plethora of options it presents.

How do you see government policies shaping the business landscape in 2024? Are there particular policy measures crucial for fostering a favourable environment for businesses?

Potent combination of focus on manufacturing, infrastructure development (physical, social, digital), ease of doing business and simplification of regulation could pave the path for India to outshine peers in the next few years. More importantly, the emphasis on inclusive and sustainable growth could make India’s growth story unique compared to the likes of China and other Emerging Markets (EMs).

Quote for social media:
“With good growth potential ahead in India’s Amrtikaal, opportunities for alpha generation exist across the entire equity market spectrum, with bottom-up stock selection holding the key.”