Market Outlook: “Strathclyde Associates” Taking A Look at India’s Economy

Market Outlook: “Strathclyde Associates” Taking A Look at India’s Economy India’s economy is expected to grow 8. 2% this fiscal year, and accelerate to 9% next year, powered by rising local demand, a robust rebound in manufacturing activity and investment... More

Market Outlook: “Strathclyde Associates” Taking A Look at India’s Economy India’s economy is expected to grow 8. 2% this fiscal year, and accelerate to 9% next year, powered by rising local demand, a robust rebound in manufacturing activity and investment in infrastructure. Policy makers are being kept on their toes by inflation: peak food inflation of over 20% recorded in December 2009 has come down to 17. 7% in March 2010, but runs the risk of spilling over to other sectors. “Strathclyde Associates” Taking A Look at India’s Economy : India’s wholesale price index-based inflation accelerated in March at 9. 90%, driven mostly by rising food prices which have surged due to supply-side pressures, aggravated by the worst drought in 37 years in 2009. Thanks to the higher base last year and forecasts of a normal monsoon this year, India’s annual inflation is expected to be 5. 5% this fiscal year, and 5% next year. Policy makers are being kept on their toes by inflation: peak food inflat Less