The government continues it’s push for manufacturing with the “Make in India” campaign and has been providing several considerations to farmers and rural India to make growth more inclusive. India’s ranking on ease of doing business improved 12 notches to 130 this year out of 189 countries surveyed, with regulatory mechanism’s improving.
The Indian economy continue to be reactive to the economic measures introduced by Prime Minister Narendra Modi. Growth continues to track along a little above 7 %. Stimulus measures continue as the government continues to narrow the budget deficit.
The central bank has reduced interest rates to a more than 5 year low of 6.50 percent, Reserve Bank of India Governor Raghuram Rajan stating that it was in response to a softening in inflation and adds potential for future rate cuts.
The IMF expects Indian growth to pick up to 7.5% for the next fiscal year however exports continue to be a problem.The balancing item in the equation of keeping imports in check has been the low crude oil price for the last 6 months.
The INR is trading at 66.66 against the USD and against the Australian Dollar is at 50.20. It continues to be range bound.