India, the winner of the clash between West and East?
Some very interesting economic data relating to India was released today.
Let's start with industrial production data . Industrial production in India increased 3.8% year-on-year in December 2023, up from 2.4% in the previous month and above market expectations of a 2.4% increase.
Manufacturing production, which represents 78% of total production, advanced by 3.9%, accelerating compared to +1.2%. On the other hand, production decreased in the mining sector (5.1% versus 7%) and in the electricity sector (1.2% versus 5.8%). Considering the April-December period, industrial production increased by 6.1%.
Here is the relevant graph
All this happened without excessive overheating in prices. and this is a significant result.
Annual retail inflation in India fell to 5.1% in January 2024, a three-month low, from 5.69% in December 2023, in line with market expectations. The slowdown was mainly due to easing food inflation and favorable base effects from last year, when inflation had risen in January 2023, while fuel and electricity prices fell 0.6% after a decline in 1%.
Here is the relevant graph:
India seems to be the real winner with the West, USA and satellites, and the East, China and Russia opposing each other. The fact of being third compared to the blocs, of cultivating good relationships with everyone, of not being too "Non-aligned", i.e. close to China, which allows us to develop good relations with the USA too, is opening up market spaces to internal production while allowing companies to obtain supplies from an energy point of view at the best prices.
India is an opportunistic country, which manages to grasp the best economically, but which still cares about internal growth, and its economy continues to grow.
Thanks to our Telegram channel you can stay updated on the publication of new Economic Scenarios articles.
The article India, the winner of the clash between West and East? comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/lindia-la-vincitrice-dello-scontro-fra-occidente-e-oriente/ on Mon, 12 Feb 2024 16:14:20 +0000.