Well-known Chinese news site Sina recently reported that, over five consecutive quarters, India’s 5.7 percent economic growth rate has reached a new low. The growth rate has been declining steadily and is now at its lowest since early 2014. The Indian SENSEX index has been in freefall since the beginning of September. International investors were not able to identify any positive spots and have decided to flee the stock market. In August and September alone, the Indian stock market lost around US$2.61 billion in foreign investments, which was roughly 40 percent of the total foreign investments in stock – based on statistics calculated at the beginning of the year. In the meantime, the growth rate of foreign investments in Indian bonds is nearly at zero. Economists expressed the belief that India’s deficit is expected to increase and international ratings organizations have started criticizing India’s upcoming stimulus plan before it even begins. Apparently, India’s October is not going to look good for foreign investors.
Source: Sina, October 1, 2017