India In-Focus — Macro stability outlook improving; Rupee falls

RIYADH: India’s worst period of macro instability is possibly over, and both consumer inflation and trade deficit are expected to moderate albeit gradually, Morgan Stanley said.

“Global commodity prices were largely steady last month, with the exception of oil prices which continued to decline,” Upasana Chachra, chief India economist at Morgan Stanley, said in the note on Wednesday.

“We believe the worst of macro instability is behind us now, though moderation in inflation and narrowing of India’s trade deficit will be gradual.”