SS: In a quarter partially affected by the economic disruptions from the Middle East conflict, India’s economy grew at 7.8% year-on-year in the three months to the end of March, a faster-than-expected pace.
In the first half of the quarter, India’s trade prospects improved sharply as it finalized a “mother of all deals” with the European Union and managed to get the U.S. to lower tariffs on its goods from 50% to 18%. These were further lowered to 10% after the U.S. Supreme Court struck down U.S. President Donald Trump’s tariffs as illegal. But then the Iran war began at the end of February, which has since become a severe risk to India’s economy and is anticipated to hurt growth and raise inflation.
The world’s fastest-growing major economy is expected to feel the pinch of inflation as the government has passed on global fuel price hikes to consumers in May, after holding them off for a couple of months. As of April, inflation remains under the RBI target of 4%, but India is widely expected to face weather-related disruptions due to El Nino this year, which could cause crop shortages and push food prices higher.
HoveringMango on
Hopefully it continues to grow at the same pace for like next 20 years.
2 Comments
SS: In a quarter partially affected by the economic disruptions from the Middle East conflict, India’s economy grew at 7.8% year-on-year in the three months to the end of March, a faster-than-expected pace.
In the first half of the quarter, India’s trade prospects improved sharply as it finalized a “mother of all deals” with the European Union and managed to get the U.S. to lower tariffs on its goods from 50% to 18%. These were further lowered to 10% after the U.S. Supreme Court struck down U.S. President Donald Trump’s tariffs as illegal. But then the Iran war began at the end of February, which has since become a severe risk to India’s economy and is anticipated to hurt growth and raise inflation.
The world’s fastest-growing major economy is expected to feel the pinch of inflation as the government has passed on global fuel price hikes to consumers in May, after holding them off for a couple of months. As of April, inflation remains under the RBI target of 4%, but India is widely expected to face weather-related disruptions due to El Nino this year, which could cause crop shortages and push food prices higher.
Hopefully it continues to grow at the same pace for like next 20 years.