The Indian economy is nearing its pre-pandemic trend, supported by the 8%+ growth in Q3FY24, and is expected to close the gap by the end of CY2024. Fixed capital formation and private consumption are already above pre-pandemic trends. High frequency indicators reflect robust growth in eway bills, air travel, and demand for two-wheelers, and bank credit recorded, even after adjusting for a longer February. India’s composite PMI of 60.6 remains stellar. However, there are early signs of moderation – yoy growth in overall core infrastructure (despite a strong coal and steel production) and goods trade in Jan, energy demand, power generation, and ports cargo traffic in Feb are muted. Foreign direct investments record a net outflow in Dec. Cumulative net foreign portfolio investments with a surge in debt inflows in FYTD2024 (up to Feb) are at a decadal high causing Indian yields to moderate. Tighter liquidity conditions continue to keep short term rates up, causing an inverted yield curve (10-year over 1-year)