Image: plus49/Construction Photography/Avalon/Getty Images At a time when India’s growth rate has been under pressure—it grew 6.7 percent in FY18—there could be some more bad news on the way. Deteriorating macroeconomic concerns—rising oil prices and trade wars—are starting to grow. India, which faces a current and fiscal deficit, could see greater volatility in the financial markets and the downside risk of its growth outlook. In a note to clients dated August 8, UBS Securities economist Tanvee Gupta Jain and analyst Gautam Chhaochharia wrote they “see a risk that the combined fiscal deficit will remain elevated, at 6.5 percent of GDP in FY19”, compared to the government’s estimate of 5.9 percent. Factors such as lower-thanexpected GST collection, rising fiscal deficit of states, and higher populist spending could keep investors on tenterhooks. Government spending is expected to continue, thus delaying recovery in the investment cycle. The Reserve Bank of India has hiked interest rates twice, and another is unlikely until early 2019. But a worsening fiscal situation and inflationary pressures could prompt it to do so.
Life is not a template and neither is mine. Like several who have worked as journalists, I am a generalist in my over two decade experience across print, global news wires and dotcom firms. But there
