Newsletter May, 2024

India’s goal of reaching a $5 trillion economy by FY28 necessitates ~11.5% nominal GDP growth per annum in INR. As India strives to achieve this goal, Uttar Pradesh (UP) is set to play a pivotal role in this growth trajectory. Had UP been a country, then it would have been the fifth largest country by population after China, India, USA and Indonesia. With its GDP per capita breaching the $1,000 mark in FY24, we believe UP is at an inflexion point especially given Gujarat/Karnataka/Tamil Nadu/Maharashtra have seen significant growth post breaching the mark. The rising GDP per capita in UP will be a big positive for several segments in the consumption and services space. Few of our portfolio companies which can see the benefits of this include Home First Finance, Havells, V-Mart, Teamlease, KEI, Orient Electric, Venus Pipes, Mold-Tek Packaging, Supreme, Astral, Eicher and Bajaj Auto.