The high level of bad debts makes banks more cautious in lending, which forces companies lacking funds to curb capital outflows, while many factories are still under-operating. At the same time, the uncertainty of the external environment is also increasing. The Federal Reserve's interest rate hike, Britain's withdrawal from the EU and the prospect of further economic slowdown in China have all brought risks to Indian and other emerging markets.

In addition, in the past two years, Indian countries have benefited a lot from low oil prices because of halving the crude oil import budget, falling inflation and improving public finances. However, economists predict that the recent rise in oil prices above $50/barrel will reduce the economic growth rate by 0.2-0.3 percentage points, while the inflation rate will be pushed up by up to 60 basis points.

References:

Huitong net