India

Inflation concerns move into focus

Prospects continue to brighten, driven by continued signs of strength in the domestic sector. In particular, industrial production is showing signs of resilience, growing at the fastest clip in two decades. Moreover, after declining for over a year, exports are expanding amid a pick-up in global demand. On a negative note, inflation is rising rapidly amid higher food prices, which has already led the Central Bank to start withdrawing some of the monetary stimulus applied last year.