India Economics Update Markets raise expectations of further loosening The weakness of inflation over the past couple of months, combined with the inaction of the US Fed, has prompted India’s financial markets to raise expectations of another cut in interest rates next... 21st September 2015 · 1 min read
India Economics Update Policies to promote FDI are paying dividends Measures taken by the government to encourage foreign direct investment into India are showing signs of success. Net FDI inflows rose last quarter to their highest level as a share of GDP since Q4... 17th September 2015 · 1 min read
India Economics Update Run-up to Bihar election a bellwether for reform appetite India’s increasingly decentralised system means that state elections such as the upcoming vote in Bihar have a bearing on economic policy. Perhaps more significant, the need to campaign at the local... 16th September 2015 · 1 min read
India Data Response Consumer Prices (Aug.) The weakness of consumer price inflation in August should be the clinching factor in determining whether or not the Reserve Bank cuts interest rates at its meeting later this month. 14th September 2015 · 1 min read
India Economics Update External vulnerabilities are still low The rise in India’s current account deficit in Q2 was due in large part to seasonal patterns. The important point from a wider perspective is that the deficit remains small. This, combined with the... 14th September 2015 · 1 min read
India Data Response Wholesale Prices (Aug.) Wholesale price inflation dropped sharply in August to its lowest rate since the series began. The WPI rate may not have as much of a bearing on policymaking as the CPI rate, but the fact that it has... 14th September 2015 · 1 min read
India Data Response Industrial Production (Jul.) India’s industrial production outperformed most expectations in July but there remainsignificant headwinds to a sustained recovery. 11th September 2015 · 1 min read
India Economics Update GST deadline unlikely to be met The long-awaited implementation of the Goods and Services Tax (GST) in India could bring significant benefits to the economy. But a decade after it was first proposed, there are still a number of... 9th September 2015 · 1 min read
India Economics Update Favourable base effects will soon fade Inflation is likely to have edged down in August, due in large part to favourable base effects caused by the spike in food prices a year ago. But these effects are soon likely to fade, which will push... 8th September 2015 · 1 min read
India Economics Update Fiscal position not a major concern for now The rapid expansion of the government deficit in the early part of this fiscal year has led to some concerns about the Finance Ministry’s ability to meet its budgeted target. These concerns are... 4th September 2015 · 1 min read
India Economics Update India is not the new China The raft of comments and media reports arguing that India is set to become the new engine of global growth following the recent struggles in China were given more fuel earlier this week with the... 3rd September 2015 · 1 min read
India Data Response Manufacturing PMI (Aug.) India’s manufacturing PMI edged down in August, highlighting that conditions are still subdued by past standards. Looking ahead, with progress on creating a favourable business environment remaining... 1st September 2015 · 1 min read
India Data Response GDP (Q2) At face value, today’s GDP figures for Q2 suggest that India matched China as the world's fastest-growing major economy last quarter. But the GDP data remain inconsistent with numerous other... 31st August 2015 · 1 min read
Asia Chart Pack Foreigners head for the exits The financial turmoil of the past month in Asia has seen foreign investors scramble for the exit. Net foreign outflows from the region’s equity markets have reached nearly US$10bn so far in August... 27th August 2015 · 1 min read
India Economics Focus Can India capitalise on its demographic dividend? The UN’s projection that India will become the world’s most populous nation as soon as 2022 has refocused attention on the country’s remarkable demographic potential and the impact this could have on... 27th August 2015 · 1 min read
India Economics Update Government meddling putting RBI credibility at risk India’s Finance Ministry is treading on dangerous ground with calls for monetary easing and other moves that could put the central bank’s independence at risk. Any loss of credibility for the RBI... 25th August 2015 · 1 min read
