More good or more bad?

"India's economy is expected to grow at 6.5% in FY25 and FY26, despite challenges from weak private consumption and reduced government spending, according to the EY Economy Watch." "The GDP growth rate fell to a seven-quarter low of 5.4% in the July- September period," and "The Reserve Bank of India (RBI) has revised its Real GDP growth forecast for FY25 to 6.6% during its latest Monetary Policy Committee (MPC) meeting." BS. "The year 2024 presented a mixed bag for the Indian economy, with notable successes tempered by emerging challenges." Foreign exchange reserves were high, hitting a record high of $704.89 billion as of 27 September (ET). Purchasing Managers' Index (PMI) was consistently positive; Manufacturing PMI was lower at 56.5 in November from 57.5 in October (BS) and Services PMI at 58.4 in November from 58.5 in October (ET). Foreign Direct Investment (FDI) increased 26% in the first half of FY25 to $42.1 billion and monthly GST collections averaged Rs 1.7 trillion. High GST collections were a result of consistently high inflation and GDP growth is starting to slow. As a result of uncontrolled inflation, "Once the backbone of domestic consumption, India's middle class, which represents 31% of its population, is cutting back sharply on daily and discretionary expenditure." FE. "Makers of packaged food to personal care products have ramped up supply of affordable packs and launching specific brands for rural areas as India's hinterland drives consumption even as urban demand cools." Mint. However, "Since much of the middle class in India resides in cities, FMCG companies have seen urban slowdown pangs hit growth rates in recent quarters, experts say." Because, "A recent FICCI-Quess Corp report on the marginal increase in  wage growth in the corporate sector, despite a four-fold growth in profits over the last four years, has brought the issue of stagnant wages into sharp focus in India." "Private final consumption expenditure dropped to 6% in the July-September quarter from a seven-quarter high of 7.4% in the previous quarter," but "the appetite for premium goods continued to grow." "Global luxury brands, such as Panerai, Bulgari and Gucci are expanding their presence, with many targeting online platforms to overcome the limited availability of luxury real estate." "Credit card spends in November dropped 16.1% month-on-month (M-o-M) to Rs 1.7 trillion, owing to moderation in consumer spending, following strong festival season momentum in October." Only 350,000 net credit cards were added in November compared to 1.3 million last year. "Drawing from his tenure at Infosys, (Mohandas) Pai pointed out that freshers earned Rs 3,25,000 annually in 2011. Today, 13 years later, they earn between Rs 3,25,000 and Rs 3,75,000 - an increase of merely 15%," whereas CEO salaries have gone up by 50-60%. BT. Middle class cuts spending while crony capitalists buy premium products. India remains poor.