BUSINESS
High prices boost FY22 nominal GDP growth, give government 30 bps fiscal room
The statistics ministry has estimated that India's nominal GDP will grow 17.6 percent in FY22, far higher than the 14.4 percent assumed in the Union Budget. This provides some additional fiscal room to the government.
BUSINESS
Economic recovery drives up private consumption to 6.9% in FY22
Private consumption is seen 6.9 percent higher in FY22 thanks to a favourable base effect. However, it remains below FY20 levels, suggesting demand remains weak.
ECONOMY
Unfavourable turn in CPI base to pour cold water over food price fall in December 2021
A favourable base effect has helped bring down CPI inflation in recent months. But with the base turning unfavourable in December 2021, inflation is set to again approach the upper bound of the Reserve Bank of India's 2-6 percent mandate.
CORONAVIRUS
Omicron surge points at third COVID-19 wave, but with different characteristics
Restrictions on movement loom as the number of daily new COVID-19 cases surge in India. But with the Omicron variant seemingly resulting in fewer hospitalisations and the possibility of cases peaking quickly, the characteristics of the third COVID-19 wave may be very different to previous ones.
