India, the world’s second-biggest rice, wheat and sugar cane grower, may get above-average monsoon rainfall for the third time in four years in 2013, boosting crop harvests and curbing retail food prices.
India’s sovereign credit outlook was lowered to negative from stable by Standard & Poor’s, taking the nation a step closer to junk status and dealing a further blow to Prime Minister Manmohan Singh’s economic agenda.
Food-price inflation in India, Asia’s third-largest economy, may accelerate after the government raised the prices it pays farmers for rice and oilseeds to records, making crops costlier, economists said.
India, the world’s largest bullion buyer, should mobilize idle gold lying with its citizens to curb imports and lower a record current-account deficit, according to the All India Gems & Jewellery Trade Federation.
India’s one-year interest-rate swap climbed to the highest relative to the benchmark lending rate since July 2008, as rising prices of onions and lentils increased concern policy makers may lose control over inflation.