India Economics Update All eyes on the union budget The government’s next budget, due to beannounced on 28th February, has taken on even more importance than normal, with the ReserveBank of India (RBI) looking for fiscal consolidation and investors... 30th January 2015 · 1 min read
India Economics Update Rupee strength supports case for policy loosening The rupee has been among the world’s best performing currencies so far this year, due to a combination of a narrowing trade deficit and strong foreign inflows into local equities. This has given the... 29th January 2015 · 1 min read
India Economics Update Markets buoyed by RBI’s early rate cut Having already made a good start to 2015, India’s financial markets have rallied further following the RBI’s decision to cut interest rates at an unscheduled meeting last week. Bond yields have... 20th January 2015 · 1 min read
India Economics Update How are economic reforms progressing? Prime Minister Modi’s use of four executive orders since the end of December has added some impetus to the reform agenda, which has arguably seen the biggest strides made in areas of tax and foreign... 19th January 2015 · 1 min read
India Economics Update More loosening to follow RBI’s early rate cut The RBI has shocked markets by cutting its policy rates at an unscheduled meeting today, much sooner than most had expected. Given the weakness of the economy and recent falls in inflation, we... 15th January 2015 · 1 min read
India Economics Update Pick-up in inflation unlikely to worry RBI Consumer price inflation is likely to have edged up in December as the unwinding of favourable base effects from food inflation more than offset the impact of tumbling oil prices and weak core price... 9th January 2015 · 1 min read
India Economics Update Early end to strike doesn’t solve coal sector’s problems The end to strike action in India’s coal sector three days earlier than planned should ensure a quick resumption to normal production levels, which will reduce the risk of blackouts in the near term... 8th January 2015 · 1 min read
India Economics Update Cause for optimism in 2015 In our first Watch of 2015, we outline the prospects for India’s economy over the coming year. Falling commodity prices should brighten the outlook by providing a boost to consumer spending and... 7th January 2015 · 1 min read
India Economics Update RBI unlikely to panic over rupee sell-off India has not been immune to the turbulence that has hit EM markets over the past few days in the wake of the unfolding crisis in Russia. This has led to suggestions that the RBI is now likely to... 17th December 2014 · 1 min read
India Economics Update Markets raise expectations of rate cuts The recent sharp slowdown in inflation, combined with dovish commentary from the RBI in its policy review earlier this month, have prompted India’s financial markets to price in the rising likelihood... 16th December 2014 · 1 min read
India Economics Update Reforming the coal sector remains a difficult prospect The likely part-privatisation of Coal India early next year shows that there is some appetite within government to reform the sector. But this is only a small step towards addressing a myriad of... 11th December 2014 · 1 min read
India Economics Update Inflation set for another sharp fall Continued steep declines in food and fuel prices, as well as subdued core pressures, mean that consumer price inflation is likely to have dropped to a record low in November. This should bolster calls... 9th December 2014 · 1 min read
India Economics Update Easing FDI restrictions are a small step in the right direction The decision this week to lift restrictions on FDI into the construction sector is another indication of the government’s willingness to address India’s investment needs. But even so, there is still a... 5th December 2014 · 1 min read
India Economics Update How much does India stand to benefit from falling oil prices? India is one of the world’s largest net importers of oil, but the sharp fall in global oil prices is unlikely toboost the economy by as much as might be expected. Retail prices haven’t fallen by much... 3rd December 2014 · 1 min read
India Economics Update RBI holds fire, but paves the way for imminent rate cuts RBI Governor Raghuram Rajan kept both the repo and the reverse repo rates on hold at 8.00% and 7.00% respectively today, but the accompanying statement suggests that rate cuts are likely as soon as at... 2nd December 2014 · 1 min read
India Economics Update What to make of the removal of gold import restrictions The RBI today announced the removal of restrictions on gold imports, and the withdrawal of the “20:80” rule which dictates that 20% of gold imports must be re-exported. There are no further details or... 28th November 2014 · 1 min read
