Skip to content

Strong Demand Powers Indian Economy Past Inflation, for Now

  • Slew of high-frequency indicators show momentum was intact
  • RBI signals more hikes to cool prices from an eight-year high
Shoppers walk through a market in Hyderabad, India.

Shoppers walk through a market in Hyderabad, India.

Photographer: Dhiraj Singh/Bloomberg

India’s economy maintained its momentum in April as a wider reopening from the pandemic kept rising prices from depressing demand for the time being.

Activity in the services sector as well as factories gained last month, while the three-month weighted averages of monthly changes in indicators from exports to credit demand suggested enduring strength. That helped keep the needle on a dial measuring so-called ‘Animal Spirits’ steady at 5 for the 10th straight month.