Insights from Peripheral Vision, January 2024

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As we transition into 2024, our latest edition of the Peripheral Vision highlights three major areas of attention.

As we usher in 2024, we focus on key indicators shaping India's economic landscape. The latest updates of Peripheral Vision, Kanvic's market intelligence dashboard, bring attention to three pivotal developments that need attention:

  • India's core sector growth dropped below 8%, the first time in the last six months
  • Divergence of manufacturing and services PMI
  • An unusual spike in start-up funding due to Flipkart's $600 million fundraising

In November 2023, India's eight core sectors experienced a growth of 7.84%, marking a noteworthy dip below the 8% threshold for the first time in the last six months. This decline stems from a reduced cement output, partially compensated by increased refined petroleum product manufacturing. As these core sectors are vital components of the nation's economic framework, monitoring their performance becomes crucial for understanding the broader economic trajectory.


The Purchasing Managers' Index (PMI) serves as a barometer for economic health, and India's divergence between manufacturing and services sectors is noteworthy. The manufacturing PMI dropped to 54.9 in December, down from 56 in November and 55.5 in October. This decline aligns with high inflation, moderated exports, and a slowdown in core sector growth. In contrast, the Services PMI painted a more optimistic picture, rising to 59 in December from 56.9 a month earlier. Factors such as slower input cost growth, increased employment rates, favourable economic conditions, and a clear demand trend contributed to the sector's success.


Amidst the economic shifts, 2023 witnessed a prolonged funding winter for start-ups, with funding dropping significantly to $11 billion from the peaks of $38 billion in 2021 and $25 billion in 2022. However, a noteworthy turnaround occurred in December, marking the highest-funded month of 2023. The primary catalyst for this surge was Flipkart's successful fundraising venture, securing an impressive $600 million. This unexpected spike not only revived optimism within the start-up ecosystem but also underscored the resilience and adaptability of India's entrepreneurial landscape.


As we delve into the nuances of these trends, it becomes clear that 2024 holds a unique set of challenges and opportunities for various sectors. The interplay between core sector dynamics, manufacturing and services PMI, and the resurgence of startup funding paints a picture of the economic landscape that businesses and investors are navigating in the current year.

Stay ahead of macro trends with #PeripheralVision- Kanvic's interactive dashboard that empowers C-level executives to pinpoint weak signals and adapt strategies in response to emerging realities-

About the authors

Deepak Sharma is the Cofounder and Director at Kanvic Consulting, where Dimpy Goyal is an Associate Consultant.

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