Kotak Mahindra's Bhardwaj: 25bps India Repo Rate Hike in April

The video discusses the moderation in GDP growth for the December quarter, highlighting the impact of a strong base effect in the first half of the financial year. Despite strong sequential momentum, the fading base effect is causing a slowdown. The services sector is expected to outperform, while the RBI focuses on inflation, anticipating a repo rate hike. Economic indicators show resilience, but challenges like global slowdown and borrowing costs persist. Government capital spending is seen as a key growth driver, with infrastructure plans potentially boosting employment.

What is one reason for the strong GDP growth in the first half of the financial year?

• A strong favorable base effect

• Improved export numbers

• High consumer demand

• Increased government spending

Which sector is expected to outperform due to post-pandemic recovery?

• Services

• Construction

• Manufacturing

• Agriculture

What is the RBI's primary concern when assessing the GDP numbers?

• Consumer spending

• Export growth

• Inflation readings

• Employment rates

What is the expected action by the RBI in response to the January inflation reading?

• Decrease in repo rate

• No change in monetary policy

• Introduction of new financial regulations

• Increase in repo rate

Which factor is considered a key contributor to future economic growth?

• Increased exports

• Lower interest rates

• Private sector investment

• Government capital spending

What is a potential challenge for private capital expenditure growth?

• Lack of government support

• High inflation rates

• Global economic slowdown

• Delayed government projects

What is crucial for the success of the ₹10 trillion infrastructure plan?

• Increased foreign investment

• Quick execution of projects

• Higher consumer spending

• Lower interest rates