For the week ended February 25, 2017:
- It was a light past data week, with data for FDI inflows and public debt being the only two significant indicator releases. FDI inflows continued to remain strong, with April-December inflows at USD 48bn, an increase of almost 18% from the corresponding period of the previous year. In Q3, 2016-17, total FDI inflows stood at USD 19bn, the fastest increase in the financial year so far.
- Numbers for public debt showed small increment for the period up to December 2016, from the period up to September 2016. Total public debt now stands at INR 61.8trn, majority of which is held in internal debt, while the remaining is in external debt. While no external debt has been raised in the last quarter, dated securities as well as treasury bill issuances have taken place, which come under internal debt.
- The minutes for RBI’s last Monetary Policy Committee meeting reveal a unanimous concern on the durability of softening in consumer price inflation, considering strong core inflation, rising WPI inflation as well as hardening of global commodity prices.
- The Macro Meter rating remained unchanged at 4.5 out of 5 in the past week, as FDI inflows, the only data point released, which also gets covered under it, showed an absolute increase from the corresponding period of the previous year. As a result, the overall trend in external sector investments remained unchanged.
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