India Economic Outlook
June 21, 2022The 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 GrowthGrowth 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.
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|Bond Yield||6.50||-0.04 %||Jan 01|
|Exchange Rate||71.23||-0.09 %||Jan 01|
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India Economic News
August 12, 2022
Industrial output increased 12.3% in year-on-year terms in June, which was a deterioration from May's 19.6% increase.
August 12, 2022
Consumer prices increased 0.46% from the previous month in July, which was below June's 0.52% rise.
August 5, 2022
On 5 August, the Reserve Bank of India (RBI) decided to increase the repo rate—its main policy instrument—by 50 basis points to 5.40%.
August 3, 2022
The S&P Global Composite Purchasing Managers' Index (PMI) came in at 56.6 in July, down from June's 58.2.
July 14, 2022
Merchandise exports jumped 23.5% year-on-year in June, following May’s 20.6% jump.