Trade issues and higher US interest rate could create outward capital flow pressure for India, but risks this year are more moderate compared with 2013, S&P Global Ratings said today. In its report APAC Economic Snapshots- July 2018', S&P said Asia-Pacific region's macroeconomic growth momentum remains strong despite further trade tensions between the US and China. It said economic data from India continue to be positive overall. The purchasing manager indices are above 50 and trending upward, suggesting a broad-based and strengthening upturn. The rupee has stabilised in recent weeks, although trade issues and higher US interest rate could again create outward capital flow pressure, S&P said. Credit growth is also accelerating. Trade growth looks robust, but higher oil prices are hurting the overall external balance. Rising oil prices are also pushing inflation higher, it added. While India remains vulnerable to capital outflow pressures arising from higher US interest ...
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