1 India Economic Overview (continued)
1.3 Consumer Price Index
Inflation Rate (retail) is currently at a 3-month low at 5.2%
5
in March 2016 with forecasted moderate deceleration to 5%
for FY16/17 (subject to inter-quarter variations). Primary reasons behind a decline in inflation rate includes good food
management by the Government, alignment of variation in minimum support price in India to world food prices and
decline in global crude oil prices.
Inflation Rate ¨C Consumer Price
FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13
FY04/05
Rate (%)
FY15/16
(E)
FY16/17
(F)
5.2% 5.0%
12
10
8
6
4
2
0
FY05/06
4.4%
6.9%
5.9%
9.2%
10.6%
9.5% 9.4%
10.2% 10.0%
FY13/14
5.9%
FY14/15
5.4%
Source: IMF, RBI
1.4 Forex Reserves
India¡¯s Forex reserves also touched an all-time high of US$360 billion
4
in March 2016, surpassing the previous high of US$330
billion in March 2015. This was driven by the strengthening of the Indian Rupee against the US Dollar and increased fund
flow into the equity and bond market in India.
5
Source: Reserve Bank of India ¨C First bi-monthly monetary policy statement for FY16/17
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ASCENDAS india trust ANNUAL REPORT
2015/2016
