Economics in the news
News and views of Deloitte India's thought leaders on various economic and federal policies
On mid-year economic survey
"The mid-year projections are more in line with our forecasts as we are expecting growth to print in the 7-7.3% handle for the full year. As such, some disruption in economic activity was expected on account of the new taxation regime and the economy would take some time to return back to full steam. On the inflation front, expect the Central Bank to be data dependent with the next few months being crucial in gauging price pressures in the economy. We can expect some more policy action if inflation numbers continue to undershoot the RBI’s estimates."
—Anis Chakravarty, Partner and Lead Economist, Deloitte India
On Index of Industrial Production (IIP)
"Industrial production registering a minor contraction could possibly be on the back of some destocking and a reduction in production owing to uncertainty on account of implementation of a new tax regime. That said, there could be some payback in the coming months as stocks get replenished and activity levels return to normalcy. Overall, industrial growth is likely to continue to remain low in the absence of any major change in demand conditions. Continued low inflation along with some pick up in rural demand could help manufacturing growth over the medium term."
—Rishi Shah, Senior Manager and Economist, Deloitte India