Inflation up at 7.55% on high food prices
Headline wholesale price-based inflation rose to 7.55 % in May, compared with 7.23 % in April, primarily owing to food and fuel prices remaining at elevated levels. The rate of price rise was slightly higher than the range of 6.5-7.5 % set by the government for this financial year.
Initial inflation numbers for the past few months, however, were later revised significantly. In March, inflation figures were revised by 80 percentage points —from 6.89 % to 7.69 %. Many economists believe despite inflationary pressures, RBI would opt for a rate cut to focus on reviving economic growth.
(Sources: Times of India, Business Standard, Zeenews, Financial Express)
May exports down 4.2% to $25.7 bn
Merchandise exports contracted 4.16 % to $25.7 billion in May, compared with $26.7 billion in the corresponding period last year, primarily owing to a severe demand slowdown in the Euro zone. However, the commerce and industry ministry remains hopeful of achieving 20 % growth in exports this financial year.
Imports dropped to $41.9 billion in May, against $45.24 billion in the year-ago period, a fall of 7.6 %. This may dash hopes of an economic revival, after the Index of Industrial Production remained just about flat in April.
(Sources: Business Standard, the Hindu, Economic Times, Smartinvestor)
Economy may revive towards year-end: NCAER
Global economic slowdown will continue to impact the growth prospects in India in the second as well as third quarter, while there may be some revival towards end of the year, the National Council for Applied Economic Research (NCAER) said today.
Andrew Burns, lead economist, NCAER during an event said that India needs to focus on medium-term growth prospects and there should be efforts on the part of the government to bring reforms in terms of infrastructure, in terms of regulatory environment that will help to support the acceleration towards the growth India has seen over the last 15 years.
(Sources: IBNLive, Economic Times, NDTV, Worldnews)
Software exporters face gloomy outlook as slowdown lingers
A slowdown in decision-making and cutbacks in discretionary spending, especially in the banking and financial sector, will continue to impede the growth of the $70 billion software services export sector in the coming quarters.
According to reports of several brokerage firms, the near-term outlook for the sector continues to be gloomy even as it shows promise in the long term.
(Sources: Livemint, Moneycontrol, Worldnews, Indiatimes)
Luxury car sales expand at slowest pace in two years
High taxation, skyrocketing petrol prices and costlier finance are not hurting mass market car buyers alone. Luxury car buyers, too, are feeling the heat with sales of models priced above $ 2 million having expanded at their slowest pace in two years in the first five months of this calendar year.
Luxury cars, which account for 2% of India’s 1.2 million car market, advanced by a mere 10% in the five months ended May against 80% during the same period in 2010.
Mercedes India’s sales in the first five months of the current year dropped 22% to 2,500 units over the last year. The story is similar for BMW India Pvt. Ltd, the market leader in luxury cars, whose sales expanded by only 10% to 3,707 units till May against a 90% growth in the same period last year
(Sources: Livemint, i4u, Indiatimes, Moneycontrol)
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