Shifting sands

Shifting sands

In the first six months of the current fiscal, India’s economic outlook has turned bleaker. While inflation continues to be in double digits, the global financial meltdown has added a fresh set of problems. Consequent tightening of liquidity conditions and plunging stock markets will only make fresh investments in manufacturing that much more difficult. And although prices of crude oil have dropped sharply from earlier peaks, they continue to be volatile. Finally, the depreciation of the rupee, despite a draw-down of India’s foreign currency reserves, reflects a shift in the otherwise rosy external sector outlook.

Also See Economic Parameters (Graphic)

Data compiled by Ashwin Ramaritham and Ravi Krishnan

Graphics by Sandeep Bhatnagar / Mint