India’s economy shows resilience in the face of weakening exports

New Delhi, Apr 21 (KNN) Despite waning pace of exports the Indian economy stayed resilient in March along with an increase in unemployment, said Bloomberg indicator.

It has dimmed the outlook for the country that’s surpassing China as the most populous nation.  

While the needle on a dial measuring the so-called Animal Spirits was unchanged at 5 for a third straight month, a jump in collections from taxes levied on consumption showed Asia’s third largest economy was ticking along.

That’s the reading from the overall activity tracker comprising of eight high-frequency indicators compiled by Bloomberg. 

The readings come in the backdrop of the Reserve Bank of India pausing rates for the first time since May to evaluate the impact of 250 basis points in rate increases so far and to support growth.

Union Finance Minister Nirmala Sitharaman had assured last week that the government was making “enough efforts” to ensure the economy stays buoyant.

Although she expressed concern over the OPEC+ output cut and impact of decisions related to Russia’s war in Ukraine.

“Weakness in demand for manufacturing goods and services activity could be a drag on India’s recovery,” she added.   (KNN Bureau)