Economic Outlook To Remain "Stable" Even Though Britain Voted To Leave The EU.

Last reviewed on: Friday, Aug 12, 2016.

Subject: National Politics

Analysis: India has a bi-cameral parliamentary system with Bhartiya Janata Party (BJP) led National Democratic Alliance (NDA) is in the center. We're maintaining India's Political Outlook at "On Review" with watch-out perspective. Recent communal clashes and election results of Bihar assembly polls putting federal government in a situation of Win-Lose game. Regional parties such Aam Aadmi Party (AAP) along with the national party, Congress is fracturing the federal system of the country. AAP immaturely targeting the central government which is causing squabble in the Parliament. So far, the government too, did not make significant changes in social reforms as well as economic reforms and implemented the policy initiative of previous government.

Performance of the Congress Party in Bihar elections is astonishing! It proves Congress could alter the expectations of the BJP in the Rajya Sabha (Upper House) as well as in upcoming assembly elections in the northern state of Uttar Pradesh, the most powerful state by political constituencies. Oftentimes, India witnesses the major shift in political roadmap by having a coalitions such as the Mahagathbandhan or the Grand Alliance (GA) which once again gave upon pondering. Party like BJP, which does not have a strong political alliance, has to think about the strength of its existing alliance before pursuing their fate in major state elections and the General elections, which to be held between Mar-19 to May-2019.

Subject: Indian Currency - INR

UNIDOW downgrades the Indian currency outlook - INR to "RISKY". USD/INR is expected to depreciate to 68 given the economic recovery a challenge in emerging economies and price level and interest rates will push the cost-push inflation in India. US Federal Reserve will be in an untenable position to maintain the interest rate scenario in the current situation, which will further push the Indian currency to the lowest level..............