The growth in exports of manufacturing goods has ridden on the back of India’s increasing specialisation and competitiveness
The sharp slowdown in manufacturing, which has been hurt by a strong dollar and deep spending cuts in the energy sector, was probably an early indication of fallout from the recent turmoil in stock markets, economists said.
Robert Prior-Wandesforde, head of India & South East Asia economics, Credit Suisse was expecting an inflation reading at 6.6% today. However, the disappointing numbers now only signal more trouble for the market ahead.