There are, however, also some incipient signs of stress in the form of shrinking net interest margins & build-up of bad loans in retail segment that need to be monitored.
Central govt's capital expenditure has seen strong growth. State finances present an encouraging picture with better tax revenue collections & improved capex spending.
Fitch downgraded US government’s credit rating. And while markets across the world, including India, slumped in response, volatility will likely be driven by other factors.
IMF has increased its growth projection by 0.2 percentage points, but tightening of monetary policy world over & rising debt distress among developing nations could drag down growth.
Moreover, India’s tight capital controls, management of the rupee and, importantly, a smaller share of global exports run counter to aspirations of making it an international currency.
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.
The reach and impact of influencers are so significant that even politicians such as Prime Minister Narendra Modi have recognised their value—the National Creators Award is proof.
Economists say there are weaknesses in India’s GDP data. But statisticians claim the accusations are based on flawed understanding, saying while GDP has problems, the economists are looking in the wrong places.
Coaching centres for Army aspirants in Jhunjhunu are shutting down due to plummeting admissions in the face of a lack of job guarantees under Agnipath Scheme.
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