World & BusinessIndia’s second-half FY27 growth outlook amid inflation and liquidity risks
The Economic Times, citing DBS, reports that India’s growth may moderate in the second half of FY27, with tighter financial conditions and higher energy prices expected to affect activity.
TLDR
The Economic Times, citing DBS, reports a possible slowdown in India’s growth in the second half of FY27, with inflation and liquidity posing risks. The report says broadening inflation pressures could keep monetary policy focused on price stability. It also says high inflows have strengthened foreign exchange reserves and banking-system liquidity, with inflation, liquidity and capital flows remaining key variables for policymakers.
India’s second-half FY27 growth outlook amid inflation and liquidity risks
The Economic Times, citing DBS, reports that India’s growth may moderate in the second half of FY27, with tighter financial conditions and higher energy prices expected to affect activity.
TLDR
The Economic Times, citing DBS, reports a possible slowdown in India’s growth in the second half of FY27, with inflation and liquidity posing risks. The report says broadening inflation pressures could keep monetary policy focused on price stability. It also says high inflows have strengthened foreign exchange reserves and banking-system liquidity, with inflation, liquidity and capital flows remaining key variables for policymakers.