India's Economy Faces Fresh Headwinds. Manufacturing Is One Bright Spot

Summary

India's manufacturing sector has helped curb a broader slowdown in economic momentum, making up nearly twenty percent of the country's Gross Domestic Product and driven by exports and inventory build up. However, the agriculture sector, which also accounts for nearly twenty percent of the country's Gross Domestic Product, faces risks from a potential very strong El Niño and weak monsoon, with temperatures trending above normal and rainfall below normal. A pullback in oil prices is expected to help lift the trade and transport sector, which accounts for about fifteen percent of the country's Gross Domestic Product.