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In this chartbook, we assess various high-frequency indicators spanning mobility, retail spending, agricultural output, monetary and fiscal conditions to assess the prevalent health of the aggregate demand. India's economy exhibits resilience amid challenges, with stable consumer spending, robust industrial activity, and favourable external trade dynamics. Effective monetary and fiscal policies, coupled with foreign investments, are contributing to economic stability and growth prospects. However, attention to agricultural challenges, liquidity management, and global economic trends remains crucial for sustaining momentum in the coming quarters.

*  Consumer Behavior: Air travel and private mobility are witnessing robust growth, indicating increased consumer confidence and mobility. Aggregate retail sales have rebounded from the festive season but lack significant strength. Consumers are recalibrating purchases due to increased spending on travel and capital expenditures like automobiles and housing. However, easy access to credit is enabling consumers to stretch their budgets. The property market remains buoyant, with rising demand for larger houses and steady increases in residential prices, indicating strong demand from higher and middle economic strata households.

*  Urban-Rural Consumption Patterns: Urban consumption of food and groceries is showing signs of slowing, while rural markets are experiencing recovery, albeit from a low base. Strong retail credit offtake persists despite RBI measures on unsecured lending.

*  Manufacturing and Industrial Activity: Manufacturing and industrial activity are driving economic growth, as evidenced by above-average electricity consumption and healthy movement of goods indicated by cargo traffic and e-way bills.

*  Employment Situation: Formal job creation is stable, and rural employment is improving, as shown by reduced dependency on employee guarantee schemes. Projections of a favourable monsoon and rising construction activity are expected to absorb the rural workforce.

*  Agriculture: While the sowing of Rabi crops has been strong, concerns over low water reservoir levels may impact yields. However, government initiatives such as crop insurance and higher agricultural credit aim to mitigate losses. Lower fertilizer and subdued tractor sales hint at sluggish agricultural activity.

*  External Trade: Merchandise exports remain resilient, supported by rising shipments of engineering goods and electronics. Stable non-oil and non-gold imports indicate domestic demand resilience. Service exports remain robust, driven by global capability centres.

*  Monetary Policy and Banking: Credit flow towards services and consumers is strong, while early signals of recovery are seen in the industry as private enterprises plan higher capital expenditure. RBI is managing liquidity through various measures, and despite volatility in global bond markets, longer-end yields remain contained.

* Fiscal Policy: Gross tax revenue growth is supported by robust income tax and GST collections. Government expenditure remains under control, providing comfort in fiscal deficit targets.

*  Balance of Payments: The current account deficit (CAD) for FY24 is estimated at 0.7% of GDP, significantly lower than FY23, attributed to falling merchandise trade deficit and stronger service exports. Portfolio flows have turned the balance of payments positive. Foreign institutional investments (FIIs) in Indian equities and debt markets are significant, reflecting anticipation ahead of the inclusion of Indian bonds in global indices. Foreign direct investment (FDI) flows are seen picking up, driven by incentives for domestic manufacturing.

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