India’s Economic Performance Review for May 2023

The performance of high-frequency indicators for May 2023 indicates a pickup in economic activity in India despite the continuing worldwide challenges of inflation and supply chain disruptions; overall, business sentiment was positive. Domestic demand patterns showed resilience despite continuing global challenges, manufacturing and service activities sustained momentum, and inflation remained within the RBI-prescribed band; but the external sector remained gloomy, with marginal gains in export sales and the Indian rupee (INR) further weakening against the US dollar. The unemployment rate also dipped during May 2023.