The gap, or impact on GDP, was closer to 25 to 40 basis points. At 50 percent, almost 50 percent of our exports to the US become non-tradable, priced out, and the impact then would be much larger, Sahay said.
The industrial output data in the month of January shows that there is a rebound from the contractions in the month of December. Capital goods output gave a positive surprise at 10.7 percent. According to analyst Anubhuti Sahay, the drag down in cables and wires has faded which has pushed the capital goods number on the higher side.
The Reserve Bank of India will hold its bi-monthly policy meet today. Experts expect 25 basis point (bps) cut. But, probability of a 50 bps cut cannot be ruled out, says Vivek Rajpal, Rate strategist at Nomura India.
Anubhuti Sahay, Head Of South Asia Economic Research, Standard Chartered Bank says the balance of payments surplus of USD 7 billion on the back of better than expected capital inflows is a big positive.
If one were to look at the average IIP growth for April to August then around 20-25 percent was contributed from this sector, says Anubhuti Sahay, Senior Economist-Global Research, Standard Chartered Bank.
Anubhuti Sahay, Senior Economist-Global Research, Standard Chartered expects the CPI to come in at 5.5 percent on the old base. She spoke to CNBC-TV18 on the factors that will come into play in January consumer price index (CPI) data today.
According to the global financial services major, strong GDP prints in 2013-14 and 2014-15 are driven more by "statistical factors" after India released a new GDP series on January 30 rather than a pick-up on the ground.
A 2% exports growth expectation has raised some worries. StanChart plans to watch out for the export performance closely, while the news on imports looks more promising