India Economic Outlook
October 18, 2016India’s economy is showing signs of gaining momentum halfway through FY 2016. Business confidence picked up in the April-to-June period and households are benefiting from favorable tailwinds due to public sector pay rises and a near-normal monsoon. In addition, the current account came close to balancing in Q2 FY 2016 due to a lower oil bill and subdued gold imports—highlighting the country’s reduced vulnerability to external risks. However, the economy is not firing on all cylinders and growth has been uneven across sectors. Reducing stress in banks’ balance sheets is vital to boosting credit growth and supporting fixed investment, which plunged in Q1 FY 2016 and dragged down GDP growth. The majority of bad debt is held by state-owned banks and policymakers are considering consolidating some indebted lenders.
India Economy Data
5 years of India economic forecasts for more than 30 economic indicators.
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|Bond Yield||6.82||0.06 %||Oct 19|
|Exchange Rate||66.65||-0.13 %||Oct 19|
|Stock Market||27,984||-0.24 %||Oct 19|
India Economic Growth
October 18, 2016A stronger monsoon should drive up rural income and add to the already favorable tailwinds to consumption. The FocusEconomics panel raised their GDP forecast by 0.1 percentage points this month and now see the economy expanding 7.6% in FY 2016. For FY 2017, the panel sees growth stable at the robust pace of 7.6%.
India Economic News
October 17, 2016
Recently-released data related to India’s external sector showed that the trade deficit totaled USD 8.3 billion in September, which was a smaller shortfall than the USD 10.2 billion gap recorded in September 2015 (August 2016: USD 7.7 billion deficit).
October 15, 2016
In September, consumer prices fell 0.23% from the previous month, which followed August’s flat growth.
October 12, 2016
The fall in industrial production moderated in August, after recording the largest contraction since November 2015 in July.
October 5, 2016
Activity in India’s manufacturing sector lost steam in September.
October 4, 2016
The newly facelifted Reserve Bank of India (RBI) decided to ease monetary policy at a scheduled meeting on 4 October, cutting the repurchase rate from 6.50% to 6.25%—an over five-year low.