India

On the other hand, India's trade acounts will be greatly affected by oil price hike as roughly 69% of oil demand is met via imports.

Growth in the quarter was already the weakest for the last nine years, marked by a contraction in manufacturing output.

Consequently, the June 2012 quarter sales is expected to show a 6.2% decline.

Consequently, domestic business will surge to a record 4% yoy.

Commodity prices fell from October last year and t was not until April and May that non-oil imports fell sharply.

Approval of restructuring package would entail monetized debt, says Maybank Kim Eng.

Contrary to popular perception, says DBS, India’s trade balance has already adjusted markedly owing to correction in the rupee exchange rate and international commodity prices.

The PMI improvement to 55 in June suggests an expanding manufacturing sector, but dip in new export orders and domestic new orders suggest that demand remains subdued, says Nomura.

Total exports soared 20-fold to US$530bn from US$26bn in 21 years, Maybank Kim Eng said.

The changing of the guard has raised expectations of fast-tracking stalled policy reforms, says BBVA Research.

The official announcements, says DBS, amounted to further incremental steps to liberalize the capital account, which only increase the dependence on debt capital inflows.

Indian Rupee now depreciated by 22.9% since the peak on Aug 1,2011 also a key concern.

State owned oil companies have been ordered by the RBI to buy half their forex needs from public banks.

It is the weakest growth pace in eight years amidst supply constraints.

The Reserve Bank of India left the repo rate unchanged at 8% and the cash reserve ratio steady at 4.75% despite market predictions.

The trade deficit for May was US$16.3 billion even as imports declined.