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India Economic Update

March 1, 2012


  • In 2011, India‘s economic growth has slowed to below 7 percent.
  • The rupee nevertheless depreciated by 20 percent between August and December.
  • Inflation slowed markedly in December 2011 and January 2012.

Apart from analyzing the macroeconomic situation in the country today, the India Economic Update also takes a closer look at agriculture. Food inflation may have relented, but food prices continue to be much higher. Production of high-protein foods, fruits and vegetables has not kept pace with demand.

At the same time,  lack of infrastructure -- including roads and cold storage -- is hampering production and marketing of perishable agricultural goods. Rules and regulations often deter private investment in the supply chain and sometimes they are arguably a bigger deterrent to private investment than even the rules on FDI in multi-brand retail, which have received a lot of attention in recent times.