Assuming only a mild US recession, it still has the potential to bring down India GDP. The US plays an important role in India’s external economy accounting for 16% in the exports of goods and 50% of IT and BPO services.
How Does a Recession in the US affect India
External finances are becoming less of a strength in India’s credit profile, but we expect foreign-exchange reserves to remain robust and India’s current-account deficit to be contained at a sustainable level.
Risk to India’s Sovereign Rating from external pressures is limited
Considering the macroeconomic factors, the Indian equities for the next quarter or two will remain choppy and volatile. This is mainly due to headwinds - liquidity tightening, rising interest rates, geo-political tension, and of course recessions in the US, Europe and the UK. How will these play out?
Taking life One Quarter at a time
To combat inflation, the RBI raised rates aggressively. But further tightening could pose risks to economic growth. The RBI is hoping that the tightening already underway will be adequate.
About the pros and cons of this aggression at
Another hedge that Indians have against inflation has traditionally been gold. Yes the yellow metal has found fervour again and the BSE has taken advantage of this by launching Electronic Gold Receipt (EGR) on its platform.
Electronic Gold Receipt launched in India
Assuming only a mild US recession, it still has the potential to bring down India GDP. The US plays an important role in India’s external economy accounting for 16% in the exports of goods and 50% of IT and BPO services.
How Does a Recession in the US affect India
External finances are becoming less of a strength in India’s credit profile, but we expect foreign-exchange reserves to remain robust and India’s current-account deficit to be contained at a sustainable level.
Risk to India’s Sovereign Rating from external pressures is limited
Considering the macroeconomic factors, the Indian equities for the next quarter or two will remain choppy and volatile. This is mainly due to headwinds - liquidity tightening, rising interest rates, geo-political tension, and of course recessions in the US, Europe and the UK. How will these play out?
Taking life One Quarter at a time
To combat inflation, the RBI raised rates aggressively. But further tightening could pose risks to economic growth. The RBI is hoping that the tightening already underway will be adequate.
About the pros and cons of this aggression at
Another hedge that Indians have against inflation has traditionally been gold. Yes the yellow metal has found fervour again and the BSE has taken advantage of this by launching Electronic Gold Receipt (EGR) on its platform.
Electronic Gold Receipt launched in India
