India Economic Outlook
June 21, 2022
The economy recovered above its pre-pandemic level in FY 2021, which ended in March this year. Turning to the first quarter of FY 2022, GDP growth is likely to speed up considerably. Growth in the industrial sector accelerated in April, suggesting it weathered the disruption to power supply caused by record-breaking temperatures well. Moreover, looser Covid-19 restrictions are boosting domestic demand, helping to push the services PMI to an over 11-year high in May. Demand will also be supported by new measures to combat rising inflation, including cuts to fuel duty, a doubling of the fertilizer subsidy, an export ban on wheat and cuts to import tariffs for some raw materials. That said, inflation remained at a near-decade high in May, which together with higher interest rates will be capping momentum.India Economic Growth
Growth this year is set to slow, but it will still be higher than it was before the pandemic. Consumption will be boosted by the relaxation of Covid-19 restrictions, while increased government spending will add impetus. That said, rising commodity prices pose a downside risk. The Consensus projects GDP to expand 7.4% in FY 2022, which is down 0.1 percentage points from the previous month’s forecast, and 6.3% in FY 2023.India Economy Data
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India Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | 6.50 | -0.04 % | Jan 01 |
| Exchange Rate | 71.23 | -0.09 % | Jan 01 |
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India Economic News
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India: Merchandise exports increase at a softer rate in May
June 15, 2022
Merchandise exports soared 20.6% in annual terms in May, on the heels of April’s 30.7% upturn.
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India: Inflation moderates in May
June 13, 2022
Consumer prices rose 0.94% in May over the previous month, below April's 1.43% increase.
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India: Industrial output records quickest growth since August 2021 in April
June 10, 2022
Industrial output expanded 7.1% in year-on-year terms in April, which followed March's 2.2% increase.
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India: Reserve Bank of India hikes rates again in June meeting
June 8, 2022
On 8 June, the Reserve Bank of India (RBI) hiked the repo rate—its main policy instrument—by 50 basis points to 4.90%.
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India: Private-sector PMI rises in May, with services PMI at highest level in over 11 years
June 3, 2022
The composite Purchasing Managers’ Index (PMI), produced by S&P Global, increased to 58.3 in May, from 57.6 in April.
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