Indian IIP Growth Expands, But General Elections Could Still Cast Looming Shadow on Economy

김동수 기자 / 기사승인 : 2019-07-14 12:55:35
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▲ [Photo source : Max Pixel]

[스페셜경제= Dongsu Kim] As of data released on March 12, the Central Statistics Office of India revealed that the country’s index of industrial production had risen all but 1.7% in January, a predicament that could cause even more turbulence for India next to the fact that it is also already heading into a general election.

As Quartz reports, the turbulence in the coming elections will likely be compounded by the economical headaches that is making the country increasingly stressed out as higher prices cocoon non-food items in India, adding to the fact that the retail inflation in the country has already jumped to a “four-month high of 2.57% in February.”

More than the election, Prime Minister Narendra Modi’s skills in managing the country’s economy will also likely come to light as the harsh reality that the GDP is not progressing as well as everyone expected and that he would have to do something about it fast.

The biggest force pulling the country’s IIP, of course, is the manufacturing sector, which has still been growing rather slowly. While B Prasanna, head of the global markets group ICICI Bank, completed the bleak of the entire picture, detailing how the lower IIP index had also played a significant scathing attack in India’s primary goods’ performance in the market.

Alongside this, capital goods also suffered volatility while infrastructure and construction goods even waned. Most countries rely on consumer spending, but since consumer goods in the country had been slow-moving since January, there didn’t seem much to be done.

The upside, though, is that the slower growth is giving the country’s central bank ample time to slash interest rates in time for its next monetary policy meeting this coming April.

Already, the RBI policy meet in February has proposed that, in an attempt to shore up growth from the flailing economy, rates are to be reduced further and interest rates lowered to consequently make loan rates go down with it.

세계 最大규모 총선지 인도, 인도국민당이 야권 압도

[스페셜경제= 김동수 기자] 최근 인도 내 9억명의 유권자가 총선 투표에 참여해 화제를 모으고 있다.

이번 총선은 29개 주와 델리 등 여러 연방직할지에서 543명의 연방 하원을 뽑았다. 이를 위해 인도 전체에 100만개의 투표소가 설치됐다.

투표 결과는 나렌드라 모디 인도 총리가 이끄는 인도국민당이 야권을 압도했으며 542개 선거구 가운데 346곳에서 선두를 달렸다. 이번 결과는 지난 2월 인도령 카슈미르 지역에서 발생한 이슬람 무장세력의 자폭 테러가 파키스탄과의 군사 충돌로 비호하면서 시작된 '안보 정국'이 여당에 유리하게 작용한 것으로 풀이된다.

[저작권자ⓒ 스페셜경제. 무단전재-재배포 금지]

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