Food price hike driven by higher rates of vegetables, pulses & their products, spices, eggs, meat and fish. While jump in vegetable prices expected, inflation in cereals & their products worrying.
While bank credit looks healthy, there are signs of stress. Pvt investments show green shoots but merchandise exports are contracting. Foreign investors continue to find India attractive.
Both India & US will benefit from trade diversification initiatives and their common concerns about China’s coercive actions could further strengthen their economic and strategic relations.
Ahead of assembly polls in Rajasthan, MP, Telangana & Chhattisgarh, analysis of metrics like committed expenditures, additional spending, etc, reveals their fiscal strengths & weaknesses.
While status quo on rates was expected, there was difference of opinion on stance, which was also left unchanged to focus on withdrawal of accommodation to ensure inflation aligns with 4% target.
Better-than-expected GDP growth in FY23 made possible by 6.1% jump in January-March quarter. Private consumption revival, sustained investment growth key to maintaining momentum.
Factors like unfavourable weather, uncertainty over oil prices, demand from China’s re-opening & intensification of geo-political conflicts could pose upside risks to inflation outlook.
Central banks have been turning away from dollar, shifting to gold. Stalemate on debt ceiling in US could push countries like Japan, China to use their own currencies for foreign trade.
Such substitution from fiat currencies can make monetary policy less effective, pose threat to nations' financial stability. Policymakers must improve trust in banking systems, currencies.
Three years into the war, Europe’s sanctions regime now resembles a policy of managed hypocrisy: Moral rhetoric for public consumption, exemptions for industrial preservation.
While global corporations setting up GCCs in India continue to express confidence in availability of skilled AI engineers, the panel argued that India’s real challenge lies elsewhere.
Without a Congress revival, there can be no challenge to the BJP pan-nationally. Modi’s party is growing, and almost entirely at the cost of the Congress.
COMMENTS