Could Brexit hamper India’s economic growth?
Could Brexit hamper India’s economic growth?

India’s economy is expected to grow by 7.5 percent this year, slightly lower than the median estimate of 7.6 percent, according to a Deutsche Bank report, citing weak economic fundamentals.
 

DB said that PMI, industrial production and non-oil-non-gold imports (key indicators of growth) have either remained flat or slowed down in April-June compared to the January-March levels, while inflation pressure has increased considerably in the second quarter of 2016.

For 2017-18, the report said "we have reduced our growth forecast post Brexit from 7.8 percent to 7.6 percent, factoring in increased uncertainty and weaker global growth in the medium term."

The direct impact from Brexit is unlikely to affect India directly, but if it continues to contribute to uncertainty in the markets and lowered global growth, as is expected, then India's growth it likely to be affected.

The IMF, which released its latest World Economic Outlook forecasts post Brexit has indeed revised down India's growth projection to 7.4 percent for this and next fiscal, factoring in the likely impact of Brexit and a sluggish investment recovery.
 

The Indian economy grew 7.9 percent for the March quarter and recorded a five-year high growth rate of 7.6 percent for the 2015-16 fiscal based on continuing robust manufacturing growth.

July's issue of Business Review Australia & Asia is now live. 

Follow @BizRevAsia and @MrNLon on Twitter.

Business Review Asia is also on Facebook. 

SOURCE: [Business Standard

Share
Share
Share
Share

Featured Articles

Featured Articles

Why Deloitte Australia’s HR technology is winning awards

Why Deloitte Australia’s HR technology is winning awards

Claiming top prize for HR tech in Australia’s leading awards, Deloitte’s app WorkforceX is helping businesses tackle the challenges of COVID-19

Claiming top prize for HR tech in Australia’s leading awards, Deloitte’s app WorkforceX is helping businesses tackle the challenges of COVID-19

Meet the CEO: Isabel Ge Mahe heading up Apple in China

Meet the CEO: Isabel Ge Mahe heading up Apple in China

Leading Apple’s business in Greater China for the last four years, VP Isabel Ge Mahe has a lot on her plate, as China’s tech crackdown continues

Leading Apple’s business in Greater China for the last four years, VP Isabel Ge Mahe has a lot on her plate, as China’s tech crackdown continues

Ciena interconnects Digital Realty Throughout APAC

Ciena interconnects Digital Realty Throughout APAC

John Garrett of Ciena discusses working with Digital Realty on a sweeping greenfield data centre footprint expansion throughout APAC

John Garrett of Ciena discusses working with Digital Realty on a sweeping greenfield data centre footprint expansion throughout APAC

China imposes restrictions on high-rise construction

China imposes restrictions on high-rise construction

Leadership & StrategyLeadership & Strategy

Keelvar's sourcing team prioritises supply chain management

Keelvar's sourcing team prioritises supply chain management

Leadership & StrategyLeadership & Strategy

Interbrand highlight Best Global Brands in the latest report

Interbrand highlight Best Global Brands in the latest report

Digital StrategyDigital Strategy