Growth picks up, but concerns remain

The economy seems to have recovered from the impact of GST and demonetisation and should grow at around 7.5 per cent for FY19

Indian investors ignored the threat of escalation in the trade war as they pushed indices to new highs. There’s been no headway in US-China talks and the US may impose punitive tariffs on an additional $200 bn of Chinese exports. China will retaliate. The beleaguered Trump administration is also threatening to scrap NAFTA as it tries to renegotiate trade terms with Canada and Mexico. This would mean an increase in global inflation and a downtrend in trading activity. While metals may soften on lower demand, crude prices will stay high as Iran sanctions bite and Venezuela collapses.
 
The rupee hit