India 's expanding manufacturing and services sectors are fuelling speculation that the outlook for the country 's economy is positive and sustained , prompting speculation the Reserve Bank of India ( RBI ) is planning to increase interest rates once again . The Society of Indian Automobile Manufacturers added to the good news , with Q2 2018 car manufacturing gaining 17 % YoY , while passenger car sales rose by 20 % and truck sales gained 50 % . Foreign investment also rose during the quarter , but the export industry is still reeling from the 2016 export tax and last year 's consumption tax .
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%. Foreign investment also rose during the quarter, but the export industry is still reeling from the 2016 cash ban and last year's consumption tax.