India continues to see robust momentum in economic activity. High frequency indicators such as power demand, core infrastructure, and bank credit record strong growth. UPI transactions cross INR 200 trillion over FY2024. E-way bills at a record high in March with 100+ million bills generated. India’s manufacturing PMI is at a decadal high and is a global outlier. Investments by foreign portfolio as well as domestic institutional investors are at an all-time high in FY2024. However, there is moderation in automobile demand in March and ports traffic in February. Wholesale and retail food inflation remains high; watch out for wheat stock with FCI which is close to its buffer limit. Banks’ deposits continue to lag credit growth – credit to deposit ratio at 80.3 is at a 54-year high; this could finally push through the monetary transmission of policy rate increases. Liquidity moves into surplus resulting in short-term yields moderating. Monetary policy rates and stance continue to be unchanged.