Millennium Post

India’s business climate on the mend, says report

The country's business climate seems to be improving with latest trends especially in demand for goods and services indicating early signs of revival, says a report. The BluFin Business Cycle Indicator (BCI) – that reflects various macroeconomic trends on a monthly basis – rose to 157.4 in September, slightly higher than 157.8 recorded in August. This is the second consecutive monthly growth. 'The key factors contributing to the improvement in BCI in September continues to be data related to intermediate goods and services, which are traditional leading indicators of the business cycle.

'However, what is concerning right now is weakness in the consumer sector. In addition, significant weakness appears in sales of two wheelers and four wheelers. Domestic air traffic has also been weak,' financial information provider BluFin said on Tuesday.   


DEUTSCHE BANK SOUNDS POSITIVE

An appreciating rupee and the falling crude are two positive factors for the domestic economy which, if continued, will support the government in containing both fiscal and current account deficits, a Deutsche Bank report said on Tuesday. ‘The rising rupee, weakening trend in energy prices create rare sweet spot for the country,’ the report said, adding that if the trend continues, it will positively impact fiscal deficit, which in turn will support containing inflation. The report said for every 10 per cent decline in global crude prices, fiscal deficit would decline by 0.28 percent of GDP and current account deficit would ease by 0.16 percent.
Agencies

Agencies

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