India's expanding manufacturing and services sectors are fuelling belief that the outlook for the country's economy is positive and sustained, prompting speculation the Reserve Bank of India (RBI) is set to increase interest rates once again. AMJuly 30 2018, 3:30 AMJuly 31 2018, 11:34 AM The Society of Indian Automobile Manufacturers added to the good news, with Q2 2018 car manufacturing increasing 17% YoY, while passenger car sales rose by 20% and truck sales gained 50%. However, a slowdown in consumer spending has been evident since last year, as consumers have cut back on discretionary spending, which accounts for about 70% of GDP.
India's expanding manufacturing and services sectors are fuelling belief that the outlook for the country's economy is positive and sustained, prompting speculation the Reserve Bank of India (RBI) is set to increase interest rates once again. The Society of Indian Automobile Manufacturers added to the good news, with Q2 2018 car manufacturing increasing 17% YoY, while passenger car sales rose by 20% and truck sales gained 50%. However, a slowdown in consumer spending has been evident since last year, as consumers have cut back on discretionary spending, which accounts for about 70% of GDP.